Piper Jaffray analyst Harsh Kumar says he's increasingly confident Cree will deliver December quarter guidance below current consensus estimates. The boarder environment is not improving and "more or less bouncing along the bottom," which is a headwind to the company's LED segment, Kumar tells investors in a research note. In addition, the Chinese electric vehicle market has gotten softer and decelerated over the last few months, adds the analyst. He sees this trend, along with the pause in 5G component spending, as headwinds for Cree's Wolfspeed unit. Kumar continues to see downside to Cree's consensus estimates. He reiterates an Underweight rating on the shares with a $38 price target.