Wolfspeed price target lowered to $55 from $75 at Piper Sandler

Piper Sandler lowered the firm’s price target on Wolfspeed to $55 from $75 and keeps an Overweight rating on the shares ahead of quarterly results. The firm notes that its updated operating model purely reflects the SiC business for power devices as well as wafer sales. For Q1 2024, Piper is expecting Wolfspeed to meet or exceed its new wafer + SiC device forecast. Importantly, the firm notes that Street metrics at this time are inconsistent given analysts have not removed the RF business results from their models. The firm continues to believe the stock movement will be primarily driven by the ramp of MVF throughout 2024.