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Wolfspeed price target lowered to $6 from $9.50 at BofA

Wolfspeed price target lowered to $6 from $9.50 at BofA

BofA analyst Vivek Arya lowered the firm’s price target on Wolfspeed (WOLF) to $6 from $9.50 and keeps an Underperform rating on the shares. Despite continued improvements to Wolfspeed’s cost structure, its growth rate in the structurally competitive device market continues to disappoint, the analyst tells investors. Even if the company can get to 30% utilization, the “theoretical threshold for breakeven,” it would require an additional several quarters to be realized and combined with a very structurally competitive market, the firm sees “a long and difficult journey ahead,” the analyst added.

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