Wolfspeed's Future Relies On Mohawk Valley Fab: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Harsh V. Kumar reiterated an Overweight rating on Wolfspeed, Inc. (WOLF) but lowered the price target to $55 from $75. The analyst expects revenues of ~$195 million, down from ~$231 million, due to the sale of the RF business to MACOM Technology Solutions Holdings, Inc. (MTSI). The future of WOLF is believed to be driven by results from the Mohawk Valley facility. WOLF shares are currently trading lower by 2.02% to $33.02.
October 12, 2023 | 7:15 pm
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Wolfspeed's price target has been lowered by Piper Sandler due to the sale of its RF business. The company's future performance is expected to be driven by its Mohawk Valley facility.
The sale of Wolfspeed's RF business to MACOM has led to a reduction in the company's revenue forecast, which has resulted in a lower price target from Piper Sandler. The company's future performance is expected to be driven by its Mohawk Valley facility, which is expected to ramp up production to meet demand for SiC devices.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
MACOM Technology Solutions Holdings, Inc. (MTSI) has acquired the RF business from Wolfspeed, Inc. (WOLF).
MACOM's acquisition of the RF business from Wolfspeed is expected to contribute to its revenues. However, the impact on the company's stock price is uncertain at this time.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50