Local Tech Wire

DURHAM, N.C. – Cree (Nasdaq: CREE) shares moved higher Thursday morning after Morgan Stanley launched coverage of the LED and semiconductor firm with a positive “Overweight” rating, but shares faltered as the day wore on.

TheStreet and Barron’s noted that Morgan Stanley set a share target price of $75.

Cree shares closed at $55.47 on Wednesday but rose quickly to $57.20 on Thursday, In late-morning trading, Cree was up 63 cents, or 1.14 percent, at $56.10.

By the close, however, Cree slipped to $53.95 after hitting a low of $53.64. Trading was heavy with more than 5 million shares changing hands.

The $75 target for Cree is still well below Cree’s 52-week high of $83.38 reached back in April.

The after Cree’s recent revenue forecast fell slightly before Wall Street expectations.

According to Eric Savitz at Barron’s, for believing Cree will continue recent growth: The cost and technology of LEDs; growth in LED lighting; the big drop in Cree’s stock since April; and Cree’s strong balance sheet with more than $1 billion incash.

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