Cree’s(Nasdaq: CREE) stock plunged 10 percent Thursday to the lowest level in recent months after news late Wednesday that it was restructuring its LED business.

A host of analyst firms cut their share target price but at least didn’t downgrade the stock. However, a look at headlines and reporting shows that Cree’s future is a bit dimmer in the media’s eyes.

Here’s a sample:

From the Wall Street Journal …

“Cree’s Stock Still Burns Too Bright

“Weakness in LED business hits market value hard”


“Right-sizing its LED operation is crucial to Cree’s future. The company plans to spin off another business that makes chips for power-management and radio-frequency products, which has contributed only about 6% to revenue over the past three years. But that move will also leave Cree exposed solely to a highly cyclical business in LED lighting and associated components.”

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From Bloomberg …

“Cree Sinks to Lowest Since October Amid Weakening LED Prices”

An excerpt:

“JPMorgan Chase & Co. lowered its price target for Cree to $35 from $39, while reiterating an overweight rating. The decision to restructure the LED business is overdue and recognizes the reality of the market, and the new 2016 targets are realistic, the analysts led by Paul Coster wrote in a note to clients.

“’Although we are lowering estimates, we think the stock can appreciate modestly from current levels,’ Coster wrote. He said the new buyback authorization should provide support for the stock.”

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From Barron’s ….

“Cree Crumbles As Analysts React To Restructuring”

An excerpt:

“LED lighting firm Cree (CREE) is down more than 11% in morning trading Thursday, as analysts digest its restructuring.

“The market wasn’t happy about Cree’s restructuring and buyback plan when it was announced after hours Wednesday. And now analysts are weighing in and they also have concerns.”

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Investor’s Business Daily …

“LED Light Maker Cree Dims On Outlook, Restructuring”

An excerpt:

“LED lighting maker Cree (NASDAQ:CREE) hit the dimmer switch on its outlook, and its stock took a dive on Thursday. Cree stock was down nearly 11%, near 27, in early afternoon trading in the stock market today and touched a more than 2.5-year low.”

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