UPDATE: SMBC Nikko Securities Starts Wolfspeed (WOLF) at Outperform
- Stocks, bonds rally as investors spy possible central bank 'pivot'; pound jumps on tax U-turn
- $22 Billion in 'Unrelenting' New Short Positions Were Added Last Week - Citi
- No Full Capitulation on Wall Street Yet - Bank of America
- FAA Certification of Boeing's (BA) MAX 10 'No Sooner Than Summer 2023' - Reuters
- Goldman Expects AMD to Cut its FY Forecast This Month, Says Headwinds are Priced In
SMBC Nikko Securities analyst Srini Pajjuri initiates coverage on Wolfspeed (NYSE: WOLF) with a Outperform rating and a price target of $140.00.
The analyst comments "We are initiating coverage on WOLF with an Outperform and $140 price target. The company is the undisputed leader in the silicon carbide (SiC) market, which is characterized by complex manufacturing and high barriers to entry. We expect SiC demand to outpace supply for the next several years driven by the electric vehicle (EV) megatrend and broader shift toward energy efficiency. WOLF's manufacturing know-how, vertically-integrated model, and industry-first 8" wafer fab are driving multi-year revenue visibility with a $20b+ design-in pipeline. In addition, we believe WOLF is better positioned to withstand any near term cyclical risks in Semi industry due to secular demand from the EV market. While execution risk is not insignificant, we are comfortable with management's FY24 outlook, which implies ~40% revenue CAGR and 15 points of GM expansion. At 11x CY23 EV/S, valuation is not inexpensive but is justified in our view given strong secular growth and significant technology/manufacturing moat."
Shares of Wolfspeed closed at $112.70 yesterday.
You May Also Be Interested In
- UPDATE: MKM Partners Starts Mister Car Wash Inc. (MCW) at Neutral
- RBC Capital Starts TD Synnex (SNX) at Sector Perform
- Cantor Fitzgerald Starts Irwin Naturals (IWINF) at Overweight
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments, Hot New Coverage, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!