Cree hits 52-week high after launching bulbs, raising guidance

Shares of semiconductor and LED product maker Cree (CREE) hit a new 52-week high after the company raised its guidance for the current quarter and announced the launch of a new line of low-cost lightbulbs. The light emitting diode, or LED, bulbs will be available exclusively at The Home Depot (HD) at retail prices as low as $9.97, the company announced. In conjunction with the product announcement, the company said it was raising its view of revenue and net income for its fiscal third quarter ending March 31. Cree raised its revenue target to $335M-$350M, compared to a consensus forecast of about $336M, and increased its non-GAAP net income target to 31c-36c per share, compared to consensus 33c. CLSA analyst Mark Heller stated in a note to investors earlier this morning that the price points on the new bulbs may convince consumers to switch from incandescent or CFL bulbs and should accelerate the company’s revenue growth. The firm increased its rating on the stock to Outperform from Underperform and raised its price target on shares to $52 from $35. In mid-morning trading, Cree surged $7.19, or 16.08%, to $51.91.

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