Shares of Wolfspeed (WOLF, Financial) plunged over 40% as rumors circulated about the company potentially losing its CHIPs Act funding. This North Carolina-based silicon carbide supplier was previously expected to benefit from $1.5 billion in CHIPs Act funding to mitigate financial strains and manage substantial capital expenditures. Despite some traction in the U.S. electric vehicle sector, Wolfspeed faces challenges in reaching profitability. Additionally, the company has recently initiated layoffs and appointed Robert Feurle as the new CEO, effective May 1.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Wolfspeed Inc (WOLF, Financial) is $11.07 with a high estimate of $30.34 and a low estimate of $5.00. The average target implies an upside of 233.06% from the current price of $3.33. More detailed estimate data can be found on the Wolfspeed Inc (WOLF) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Wolfspeed Inc's (WOLF, Financial) average brokerage recommendation is currently 3.0, 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 $55.81, suggesting a upside of 1578.5% from the current price of $3.325. 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.
