Wolfspeed downgraded at TD Cowen on near- and long-term challenges

As previously reported, TD Cowen downgraded Wolfspeed to Hold from Buy with a price target of $25, down from $40. The firm had and still believes in Wolfspeed’s “pole position” in 200mm materials and devices capturing value in a burgeoning SiC market, but EV slowdowns and an industrial correction will weigh on the near-term ramp and sentiment, the analyst tells investors. In addition, while slower spending will ease balance sheet concerns, scrapped investment in new facilities caps the long-term model and impairs the long-term story, the analyst contends.