Morgan Stanley Lowers PT on Cree to $38

Morgan Stanley is out with its report today on Cree CREE, lowering its PT to $38 from $40. In its report, Morgan Stanley writes, "Cree's acquisition of Ruud Lighting raises questions: Is Ruud the right partner? Is North American outdoor lighting the right focus market? Did Cree overpay? Will customer backlash derail the core business? We don't have the answers, but we believe Cree is well-positioned to ride the wave of LED adoption. The stock traded down 14% intraday, which we view as overdone. We lower our price target by 5%, to $38, mostly to reflect $372 million less cash." Morgan Stanley maintains Overweight on CREE. At the time of posting, shares of CREE were trading pre-market at $30.61, down 2.05% from Thursday's close.