- Wolfspeed's stock has plummeted 60% amid uncertainties related to CHIPS Act funding.
- Despite significant losses, analysts foresee the stock potentially doubling in value.
- Substantial tax refunds secured by the company offer some financial relief.
Wolfspeed (WOLF, Financial), an industry pioneer in silicon carbide wafer technology, has been navigating a turbulent market with its stock suffering a dramatic 60% decline. The prevailing uncertainty surrounding CHIPS Act funding is a major factor behind this dip. However, optimism remains in the air as market analysts project a potential doubling of the stock's value. Furthermore, Wolfspeed has successfully secured $192.1 million in tax refunds, with expectations of additional refunds, providing a crucial buffer against current financial hurdles.
Wall Street Analysts' Insights
In an analysis conducted by 11 expert analysts, the one-year price targets for Wolfspeed Inc (WOLF, Financial) were unveiled. The average target price is currently at $8.19, with a high estimate of $30.34 and a low estimate of $2.00. This average target suggests a potential upside of 160.68% from the current trading price of $3.14. For more in-depth projections, visit the Wolfspeed Inc (WOLF) Forecast page.
Furthermore, the consensus from 14 brokerage firms reflects an average brokerage recommendation status of 3.1 for Wolfspeed Inc (WOLF, Financial), which corresponds to a "Hold" rating. This rating system employs a scale of 1 to 5, with 1 signifying a Strong Buy and 5 indicating a Sell recommendation.
Understanding the GF Value Estimate
According to GuruFocus estimates, the anticipated GF Value for Wolfspeed Inc (WOLF, Financial) in the coming year stands at $53.98. This valuation suggests a remarkable upside potential of 1619.11% from its current price of $3.14. The GF Value is crafted as a fair stock trading estimate, grounded on the historical trading multiples, past business growth, and future performance expectations. Detailed valuation insights are available on the Wolfspeed Inc (WOLF) Summary page.
