Wolfspeed Shares Gain As Piper Sandler Bumps Up Price Target By 28%

Piper Sandler analysts upgraded Wolfspeed Inc (NYSE:WOLF) to Overweight from Neutral and increased the price target to $160 from $125, implying a 33.4% upside.

• "After being on the sidelines for the last few years, we feel investors should own the stock now," said Harsh Kumar, an analyst at Piper Sandler. 
• "Wolfspeed has the best wafers that allow for a yield advantage when manufacturing large chips," Kumar said, referring to the company's 8-inch wafer line.
• In addition, the company's new factory in Mohawk Valley, New York, is nearly ready to roll out commercial wafers by mid-year. 
• Piper Sandler noted it as a key driver of expansion as the company's North Carolina facility is manually oriented and meant for LED production.
• The analysts said they feel the valuation is more compelling after the roughly 20% pullback in the stock. 
• Price Action: WOLF shares traded higher by 7.65% at $120.32 on the last check Monday.