DURHAM – Cree’s stock is a buy due to continuing developments in the electric vehicle market where its Wolfspeed business group is emerging as a leader in power supply and other products needed in the EV space.
So says Citi, which raised the stock to “Buy” from “Neutral” and upped its stock target price to $160 from $105.
“Notably, we believe that during President Biden’s first State of the Union he will highlight and subsequently detail his plan to invest $400B in clean energy, which includes improving battery technologies, restoring the tax credit for EVs, and installing a national network of EV chargers, which we view as positive for CREE and the EV market generally,” wrote Citi analyst Amanda Scarnati.
Cree (Nasdaq: CREE) is so focused on Wolfspeed that it is selling off the firm’s LED business and even plans to rename the company Wolfspeed in coming months.
The company also is building a $1 billion semiconductor manufacturing plant in New York and is expanding operations in Durham, saying more capacity is needed to meet in large part chip demands for EV vehicles.
Cree shares jumped nearly 3% in pre-market trading.
The upgrade comes just days after Cree’s shares hit an all-time high then fell when the company announced -plans to raise $500 million through a stock offering.
Cree looks to raise $500M; stock, which had hit all-time high, takes a 4% hit
In his own words: CEO discloses why he’s changing Cree’s name to Wolfspeed
