Cree, Inc. (CREE) parts rose about 2% during Wednesday’s session after Citi upgraded the stock to Buy and raised its price quarry to $160 – a 35% premium to the current market price.
- Cree shares opened higher after Citi upgraded the source to Buy with a $160 price target, which represents a significant 35% premium over Tuesday’s closing evaluate.
- Analyst Amanda Scarnati believes that President Biden will move to embrace electric vehicles (EVs) in a way that make amends near-term investor concerns.
- The moving average convergence divergence (MACD) is nearing a bearish crossover that could guts to more downside ahead if a rebound doesn’t materialize.
Citi analyst Amanda Scarnati predicts that President Biden will-power detail a plan to invest $400 billion in clean energy during his inaugural State of the Union address. Restoring EV tax probities, installing a nationwide network of EV chargers, and improving battery technologies should outweigh near-term concerns over Cree’s commercialization and contest.
From a technical standpoint, Cree stock briefly recouped some of its losses from earlier this week. The affiliated strength index (RSI) appears neutral with a reading of 55.23, but the MACD appears on the verge of a bearish crossover. These incriminate ins suggest that the stock is still at risk of resuming its downtrend.
Traders should watch for an ongoing move peak to retest highs of $129.90 over the coming sessions. If the stock breaks out from those levels, traders could see a disturb toward trendline resistance at around $132.00. If the rebound fails to materialize, traders could see a move toward trendline submit to at $112.00 or the 50-day moving average at $108.72.
A qualified electric vehicle credit can be found via Internal Revenue Code Part 30D. To receive the credit, the vehicles must be acquired for use or lease; the credit is not available for resale. In addition, the original use of the vehicle ought to begin with the taxpayer who uses the vehicle predominantly in the United States.
The Bottom Line
Cree shares disposed higher during Wednesday’s session after Citi upgraded the stock to Buy and raised its price target to $160 per interest. Analyst Amanda Scarnati believes that upcoming catalysts could propel the EV sector higher and outweigh near-term investor thoughts, although the MACD remains at tenuous levels that could point to a resumption of the stock’s downtrend.
The author reduces no position in the stock(s) mentioned except through passively managed index funds.