Wolfspeed in Spotlight as Mizuho Ups Price Target After Funding "Lifeline"
Wolfspeed Inc. was in the spotlight on Wednesday as Mizuho Securities upped its price target on the semiconductor company after it received a funding "lifeline" from the CHIPs Act and several private equity firms.
Shares rose 10% in Wednesday trading.
While the funding in aggregate addresses some of the concerns about Durham, N.C.-based Wolfspeed (including its roughly $5B in net debt), there are still headwinds, including a 10% to 20% decline in silicon carbide pricing; increased supply coming from China; and slowing electric vehicle sales, Mizuho analyst Vijay Rakesh said. Rakesh upped his price target on Wolfspeed to $9.50 from $8 but kept his Underperform rating.
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