Morgan Stanley Provides Color on Cree

Morgan Stanley provided color on Cree CREE. In a research report published today, Morgan Stanley commented on the company's Q2 results. In the report, Morgan Stanley states, “Cree is scheduled to report F2011 results Tuesday August 9th. The stock is down 50% YTD and a lot of bad news is already reflected, but we don't have conviction that margins have stabilized. FY12 consensus estimates are also down nearly 50% after four consecutive disappointing quarters but we believe they have further to fall. Our FY12e non-GAAP EPS estimate of $1.27 is 17% below consensus on lower gross margins.” At the moment, the rating agency has an Underweight rating and a price target of $28 placed on the company's stock. On Monday, CREE lost 2.90% of its value to finish the day at $32.85.