Wolfspeed activist letter ‘welcome development,’ says William Blair

William Blair says that while the firm though last quarter’s cuts may have stabilized expectations, it sees another $10M-$20M risk to second half of 2024 expectations from further weakness in China industrial and energy demand. The analyst sees the letter from activist Jana Partners as a “welcome development that most frustrated investors will commiserate with.” Blair believes the letter may offset another reset to expectations and keeps an Outperform rating on the shares.