Wolfspeed price target lowered to $45 from $80 at Evercore ISI

Evercore ISI lowered the firm’s price target on Wolfspeed to $45 from $80 and keeps an Outperform rating on the shares. Heading into Q3 earnings for the semiconductor and semiconductor equipment group, the firm believes a return to outperformance will remain difficult in the near-term given concerns regarding gradual China and consumer recovery, auto demand potentially rolling, and possible AI overbuilding and recommends “picking your spots carefully.” However, longer-term, Evercore sees semis returning to year-over-year growth sometime in Q4 and says that the past four cycles suggest about 24 months of year-over-year growth thereafter.