Harsh Kumar, an analyst at Morgan Keegan, was among stock followers who reiterated support for Cree (Nasdaq: CREE) after the LED manufacturer reported a 37 percent in net income for the third quarter of fiscal 2005 on Thursday.

“In our view, the company appears to be making solid progress towards its two main initiatives: its three-inch conversion where yields have improved and its stated plan of penetrating the white LED marketplace for displays where it has new design wins,” Kumar wrote in a research note, according to media reports.

He has ranked Cree stock as “outperform”.

Cree said net income hit $20.7 million, or 27 cents a share, up from $15.1 million a year earlier. Revenues for the quarter increased 25 percent to $77.2 million.

Cree closed at $24.94 on Friday, the same as it did on Thursday when the financial report triggered a nearly 12 percent increase in the stock’s price.

Cree: www.cree.com