UPDATE: Morgan Keegan Lowering Price Target On Cree

Morgan Keegan is out with a research report on Cree, Inc. CREE and is lowering its price target to $49 from $53, and it has an Outperform rating on shares. In a note to clients, Morgan Keegan writes, "CREE reported results of $0.28/$243 million vs. Street expectations of $0.27/$233 million. CREE saw a double-digit increase in LED lighting products and mid-single digit increase in LED components. Power and RF products slightly offset some of the gains in LED lighting and components. Additionally, LED chip sales were essentially flat in the quarter. Gross margin was 38.8% vs. our expectation of 40%." Shares of CREE gained $2.84 yesterday to close at $29.49.