Wolfspeed initiated with Neutral on increasing competition at Mizuho

Mizuho last night initiated coverage of Wolfspeed with a Neutral rating and $30 price target. With the silicon carbide market growing at an estimated 30% annually, competition from new and existing suppliers in the U.S., Europe and China could pressure supply, pricing and margins against a slowing electric vehicle market, the analyst tells investors in a research note. The firm sees slowing EV demand and capacity ramps weighing on Wolfspeed’s margins.