Jefferies Initiates Coverage of Wolfspeed with Hold Rating
May 19, 2023
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Jefferies has recently initiated coverage of Wolfspeed ($NYSE:WOLF), a provider of power and radio frequency (RF) solutions, with a hold rating. This has caused the company’s stock to rise, making it a great time for investors to consider buying in. Wolfspeed is widely recognized as one of the leading providers of wide band gap power and RF solutions. They specialize in a range of products including power conversion systems, RF components, and silicon carbide materials & devices. Their advanced technology has made them a top choice for many companies who are looking to upgrade their systems.
The company is based in North Carolina and is a subsidiary of Cree Inc. They are committed to providing leading-edge technology and reliable products that can offer improved performance and efficiency when compared to traditional silicon products. With this commitment, they have seen their market share for power and RF solutions grow exponentially in recent years. Jefferies’ hold rating on Wolfspeed could be a sign that the stock may be overvalued at this point, but investors should still take the time to analyze the company’s potential and performance before making any decisions. Wolfspeed is well-positioned to benefit from the increasing demand for wide band gap products and is likely to continue to make progress in the space moving forward.
Stock Price
On Thursday, Jefferies initiated coverage of Wolfspeed (WOLFSPEED), a provider of gallium nitride (GaN) and silicon carbide (SiC) power and radio frequency (RF) solutions. Jefferies gave WOLFSPEED a Hold rating, believing that the stock is currently fairly-valued. The coverage announcement saw WOLFSPEED’s stock open at $42.1 and close at $43.2, up by 2.8% from its previous closing price of $42.0. This increase in value indicates that investors responded positively to Jefferies’ coverage initiation, though the Hold rating implies that there may not be much more room for growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wolfspeed. More…
| Total Revenues | Net Income | Net Margin |
| 914.6 | -184.2 | -28.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wolfspeed. More…
| Operations | Investing | Financing |
| -121.5 | -1.01k | 1.44k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wolfspeed. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.45k | 3.75k | 14.31 |
Key Ratios Snapshot
Some of the financial key ratios for Wolfspeed are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.2% | -59.9% | -35.0% |
| FCF Margin | ROE | ROA |
| -83.9% | -11.5% | -3.7% |
Analysis
At GoodWhale, we have conducted a thorough analysis of WOLFSPEED’s fundamentals. Based on our Risk Rating, we have determined that WOLFSPEED is a high risk investment in terms of financial and business aspects. After delving into the details of WOLFSPEED’s income sheet, balance sheet, and cashflow statement, we have detected 3 risk warnings that need to be addressed. To find out more about the risk warnings, you must become a registered user. We believe that it is important to conduct a full evaluation of any investment before committing to it, and we are dedicated to helping our users make informed decisions. More…
Peers
The company’s products are used in a variety of applications, including cell phones, wireless infrastructure, and military and aerospace. Wolfspeed‘s main competitors are Nova Ltd, Cirrus Logic Inc, and CML Microsystems PLC.
– Nova Ltd ($NASDAQ:NVMI)
Nova Ltd is a large company with a market cap of 2.09B. It has a strong ROE of 25.44%. The company operates in the oil and gas industry and is a leading provider of exploration and production services.
– Cirrus Logic Inc ($NASDAQ:CRUS)
Cirrus Logic, Inc. is a fabless semiconductor company that specializes in digital signal processing and analog mixed-signal chips. It has a market cap of $3.79B and a ROE of 21.86%. The company’s products are used in a wide range of electronic devices, including smartphones, tablets, digital cameras, MP3 players, automotive entertainment systems, and industrial applications. Cirrus Logic’s products are based on a proprietary mixed-signal processing technology and are designed to meet the demands of high-performance applications.
– CML Microsystems PLC ($LSE:CML)
CML Microsystems PLC is a market leader in the design, development and manufacture of high performance analog and mixed-signal semiconductors. The company has a strong focus on delivering innovative solutions to the wireless communications, automotive, industrial and medical markets. CML Microsystems has a long history of profitability and has a strong balance sheet with no debt. The company’s shares are listed on the London Stock Exchange.
Summary
Investment analysis of Wolfspeed recently received a Hold rating from Jefferies initiating coverage. This means that analysts are not recommending investors to buy or sell the stock at this time. As a result, the stock may rise in the short-term, but in the long-term, investors may need to consider other factors before investing. Investors should consider analyzing the company’s financials, competitive landscape, and future prospects in order to make a well-informed decision about whether to invest in Wolfspeed.
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