Cree, Inc. (CREE): Lighting the Future With LEDs

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Businesses can also save money

In addition to residential, the trend towards LED lighting is increasing for commercial, governmental, and other applications. While upfront costs of Cree, Inc. (NASDAQ:CREE)’s bulbs are higher, business users can achieve a lower cost of ownership with payback in less than 1 year.





Conclusion

Cree is at the forefront of the LED bulb market that is up and coming and slowly gaining a higher adoption rate. he company will benefit from a pick-up in general lighting as the cost savings for both residential and businesses are proven. Cree’s products is a step in the right direction for mass LED adoption, especially given the fact that Cree, Inc. (NASDAQ:CREE)’s bulbs are proven to be high quality, affordable, reliable and can break the $10 price point.

The bulbs can bring in anywhere from $10-15 million in revenues from Home Depot alone and a $59 price target based on their 29x forward 2014 CY EPS of $2.05 is reasonable.  The stock is currently trading at $54.21 a share, and has a beta of 1.47, making the stock extremely attractive given the fact that the markets continue to climb higher.

The article Cree: Lighting the Future With LEDs originally appeared on Fool.com and is written by Jayson Derrick.

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