CREE Stock Gained Despite Bearish Comments

Cree Inc. (CREE), last week, received a bearish comment from analyst Craig Hattenbach of Morgan Stanley. The CREE shares have reached their maximum, in his opinion, but the company is still in a strong position for long-term growth.

Morgan Stanley lowered its recommendation for CREE shares from “Overweight” to “Equal-weight” on Monday, December 7, 2020. The target price of $93 was set at the same time, which was equal to the closing price ($93.50) of the stock in the previous session. Resultantly the stock price dropped to $90.77 on the day the analysts firm revised its recommendation. Craig Hattenbach was in believes that a high stock valuation has been created by CREE’s recent rally, which the company needs to justify in the coming quarters. There may be a temporary decline in the stock price in this respect.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free

Sponsored


Other Wall Street analysts have also set a target price of $90 for Cree shares, such as JPMorgan. At the same time, experts note the leading position of Cree Wolfspeed power electronics. These are currently some of the most compact and powerful devices available for mass production of this kind. In various industries, including inverters and other parts of solar power plants, this type of electronic component is used. Green energy has not lost its prospects during the Covid-19 period, and this market can provide Cree with sustainable sales.

The company has been building a large semiconductor plant in the United States. The manufacturing facility will enable the manufacture of large volumes of silicon carbide semiconductors better suited for electrical engineering operating at high currents and high temperatures. Therefore, Cree intends to make a major contribution to the market for basic components for the fast-growing market of electric vehicles, personal mobility instruments, charging stations, etc.

Cree Inc (CREE) stock rose by 5.63 percent to $95.85 on Thursday. The current price is still up more than 3 percent from the target price assigned by the Morgan Stanley analyst, while over the week stock has gained 2.37 percent.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Hot Topics

Related Videos

Related Videos

Related Articles

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

7 GROWTH STOCKS FOR 2021

592

100% free. stop anytime no spam