Investing.com - Lighting and LED company Cree slumped in midday trading Monday following a downgrade by Piper Jaffray.
Piper Jaffray cut it rating on the stock to underweight from neutral and lowered its price target to $38 from $57, citing broad weakness in the LED market.
Shares of Cree (NASDAQ:CREE) fell about 4.7%.
“Within LED, we see the inventory correction (and associated underutilization) lasting throughout the end of 2019,” analyst Harsh Kumar wrote. “On (silicon carbide power and radio frequency unit) Wolfspeed, despite RF and power being supply constrained, we believe the company continues to adjust its production from Huawei-specific products, which is taking some time.”
“In the near term (12 months), we see additional downside pressure on the stock as investors recalibrate their expectations,” Kumar added.