Needham & Company reiterated a Buy rating on Cree and raised its price target to $36.00 (from $32.00).

The increased price target relates to analysts' view that LED lighting has "Come of Age". "We expect initial adoption of LED will be in the high-end commercial and outdoor segments, where we believe Cree's chip performance and integration are crucial to achieving strong adoption," said analyst Y. Edwin Mok.

Mok thinks Cree has an advantage that will allow it to charge premium prices and drive strong margins.