Merriman Curhan Ford is out this morning maintaining its Neutral rating on Cree Inc (CREE).  Hat tip to Street Insider for the analyst comment:

===> Click Here For Your FREE Cree Analysis

“We expect Cree to report June quarter upside when it reports F4Q10 earnings on August 10. While strong end market general lighting demand will likely drive revenue upside, we believe its near-peak 48% gross margin levels are unlikely to be sustainable with increasing LED chip supply and higher depreciation cost from its fab tool ramp. With the stock trading at ~6x P/CY10 Sales vs. Cree’s gross margin, its valuation is at the peak levels of other historical chip leaders.”

Shares are fractionally higher in pre-market trading and continue to look relatively bullish as it looks to carve out a new base.  A break above the June high of 71.34 would be significantly bullish.