Cree, Inc. Beats on Earnings, and Is Immediately Downgraded
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
Wednesday was a fabulous day for Cree (NASDAQ: CREE) investors, who saw shares soar as much as 20.9% after the company reported market-topping earnings results the previous evening. Cree stock is up again today, if by just a fraction -- and maybe even that gain won't last long.
Why not? You can blame the somewhat less-than-friendly analysts at Williams Capital for the risk Cree shareholders bear today. This morning, you see -- immediately after seeing Cree's earnings beat -- StreetInsider.com reported (requires subscription) that Williams is downgrading Cree stock from hold to sell and assigning the $34 stock a new price target of just $27.
Source: Fool.com
