Wolfspeed price target lowered to $42 from $44 at Morgan Stanley

Morgan Stanley analyst Joseph Moore lowered the firm’s price target on Wolfspeed to $42 from $44 and keeps an Equal Weight rating on the shares. The firm’s target comes down as it adjusts for higher interest expense to reflect the additional drawdown in the company’s agreements with Renesas and Apollo, notes the analyst, who also highlights “the potential strain from continuing aggressive investment despite a lack of device traction.”