Jefferies Maintains Buy on Cree

Jefferies is out with its report today on Cree (NASDAQ: CREE), maintaining Buy after hosting a meeting with CREE management.

In a note to clients, Jefferies writes, "The company believes the end market continues to grow, but that the slower rate and shorter lead time is caused by a problematic inventory level. The company sees inventory burning off, the rate of price degradation has slowed, and end markets are slowly recovering in all three geographic markets – Europe, Asia, and the US. Utilization was at 80-85% range, and is expected to decline in the June Quarter."

Jefferies maintains a $46 PT on CREE.

At the time of posting, shares of CREE were trading pre-market at $39.69, up 0.97% from Tuesday's close.