Expert Outlook: Wolfspeed Through The Eyes Of 4 Analysts

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on Wolfspeed WOLF in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $28.5, a high estimate of $45.00, and a low estimate of $18.00. Highlighting a 14.49% decrease, the current average has fallen from the previous average price target of $33.33.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of Wolfspeed by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Wolfspeed. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Wolfspeed compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Wolfspeed's stock. This analysis reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Wolfspeed's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Get to Know Wolfspeed Better

Wolfspeed Inc is involved in the manufacturing of wide bandgap semiconductors. It is focused on silicon carbide and gallium nitride materials and devices for power and radio-frequency (RF) applications. The company serves applications such as transportation, power supplies, inverters, and wireless systems. Geographically, it derives a majority of revenue from Europe and also has a presence in the United States; China; Japan; South Korea, and other countries.

Financial Milestones: Wolfspeed's Journey

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Wolfspeed displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 4.21%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Wolfspeed's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -74.19%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Wolfspeed's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -13.71%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Wolfspeed's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.99%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Wolfspeed's debt-to-equity ratio surpasses industry norms, standing at 5.55. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.