More Caution Remains in LED Sector (AIXG, VECO, RBCN, CREE)
Canaccord Genuity is bringing up more caution in the LED sector this Monday. The analyst team is attributing recent strength due to restocking and double ordering. Canaccord’s rating call is cutting Aixtron SE (NASDAQ: AIXG) to a Sell rating from…
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In the LED sector piece we also see a warning that Rubicon Technology, Inc. (NASDAQ: RBCN) is likely to miss earnings expectations: “Despite stabilizing sapphire pricing, we expect RBCN to miss Q1 expectations, as the company just began selling 2” and 4” cores late in Q1. Given the lack of 6” volume, we see risk to near-term results.”
Cree, Inc. (NASDAQ: CREE) was the one that was maintained with a BUY rating, but Canaccord does not see a meaningful recovery until the second half of 2012.
As more caution is present, the firm noted, “We have no updates on the Chinese 5YP at a national level, but it sounds like some local governments are still working on their own subsidies for street lighting, outdoor lighting, etc.”
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
