Mizuho has revised its outlook for Wolfspeed (WOLF, Financial), reducing the company's price target significantly from $5 to $2. The firm maintains an "Underperform" rating on the stock, signaling potential difficulties ahead for the semiconductor company.
The primary concern highlighted by Mizuho is the increasing oversupply in the market, largely driven by expanding production capacity in China. As Chinese manufacturers ramp up their capabilities, competition intensifies, creating a challenging environment for Wolfspeed to navigate.
Investors and market analysts will be closely monitoring how Wolfspeed addresses these supply dynamics and whether any strategic adjustments will be made to counteract the increased competitive pressure.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Wolfspeed Inc (WOLF, Financial) is $8.19 with a high estimate of $30.34 and a low estimate of $2.00. The average target implies an upside of 234.10% from the current price of $2.45. More detailed estimate data can be found on the Wolfspeed Inc (WOLF) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Wolfspeed Inc's (WOLF, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Wolfspeed Inc (WOLF, Financial) in one year is $53.83, suggesting a upside of 2097.14% from the current price of $2.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Wolfspeed Inc (WOLF) Summary page.
