UPDATE: Morgan Stanley Lowers PT on Cree to $28

Morgan Stanley is out with its report today on Cree (NASDAQ: CREE), lowering its PT from $35 to $28.

In a note to clients, Morgan Stanley writes, "Price competition in LEDs for lighting is intense. Channel checks indicate Cree needs to cut prices or risk losing market share as competitors are priced lower. We are lowering our gross margin forecast to 35%, cutting estimates, and reducing our price target 20% to $28."

Morgan Stanley maintains Underweight on CREE.

At the time of posting, shares of CREE were trading pre-market at $34.08, down 0.06% from Tuesday's close.