Cree, Inc. (CREE) is one of the leading producers of SiC and GaN-based LEDs. September quarter revenue and earnings exceeded consensus estimates.
The global movement to energy efficient lighting is prompting lighting companies and consumers to look at other options. Therefore, lighting will be the strongest end market for Cree, likely followed by video displays and notebooks. Yield improvements, higher capacity utilization, larger wafers and offshore production will increasingly offset new product ramp up costs.
The LED market is hot in our opinion, and the LLF acquisition opens up new opportunity. We are reiterating our BUY rating on CREE shares.Zacks Investment Research
