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

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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