Wunderlich Reports Investors Struggling With Cree

According to Wunderlich, investors have recently been struggling with Cree (NASDAQ: CREE) shares trying to understand what the earnings power would be.

Wunderlich reported that it believes it could be north of $3.00 per share. “In the less-than-$3.00 camp are analysts who look at the lighting market and then peel the heck out of the onion. Nothing wrong with this, but we believe it's a very incomplete view as it doesn't address the retrofit market where functioning lights are ripped out, and in some of these cases CREE's percent of content is higher when it makes the light and fixture. We reiterate our Buy rating and $80 price target on CREE shares.”

Cree closed yesterday at $41.07.