Citi opens ‘positive Catalyst Watch’ on Wolfspeed after SiC agreement

Citi analyst Atif Malik opened a "positive Catalyst Watch" on Wolfspeed while keeping a Buy rating on the shares with a $100 price target. The long-term silicon carbide wafer supply agreement worth $255M with a leading power device company announced yesterday shows the tight supply and strong demand for SiC devices, Malik tells investors in a research note. The analyst says wafer substrates remain the most difficult part of electric vehicle power devices as wafer manufacturing requires good seed layer, smaller boule length, and defect prone slicing/polishing process steps.