Wolfspeed price target lowered to $14 from $17 at Deutsche Bank

Deutsche Bank lowered the firm’s price target on Wolfspeed to $14 from $17 and keeps a Hold rating on the shares. Despite “apparent stability in Mohawk execution, which is welcome, and some optimistic signs on yield,” the firm has reduced its FY26 sales and EBITDA forecasts to reflect the closing of the Durham 150mm fab to transition that volume over to Mohawk 200mm. Wolfspeed announced that annual capex by FY26 will fall to $200M-$600M, and the company stated that this reflects the “significant improvement in yield and efficiency in the 200mm materials and device facilities,” the firm believes it may also partly reflect a recognition that Wolfspeed needs to moderate its high spending to reduce the probability of a cash crunch, the analyst tells investors.