Analyst: Wolfspeed Stock is a "Buy"

The brokerage bunch was bullish towards WOLF coming into today

Deputy Editor
Jun 24, 2022 at 9:40 AM
facebook twitter linkedin

Wolfspeed Inc (NYSE:WOLF) stock is up 7% to trade at $67.30 at last check, after Goldman Sachs upgraded it to "buy" from "neutral." The firm said WOLF's growth story within the electric vehicle (EV) space is "likely well appreciated by investors." Further, the analyst cited the equity's attractive entry point and upwards earnings inflection ahead as additional reasons for the bull note.

Coming into today, the majority of analysts were bullish on Wolfspeed stock, though there's still room for improvement. While eight call the shares a "strong buy," four still rate WOLF a "hold" or worse. Meanwhile, the 12-month consensus price target of $108.03 is already a 71.8% premium to current levels.

Shorts are chiming in as well, with short interest up 17.7% in the most recent reporting period. The 10.04 million shares sold short now make up 8.2% of CLR's available float. It would take over one week to buy back these bearish bets, at the stock's average pace of daily trading. 

Goldman Sachs makes a solid case for WOLF's attractive entry point, though, with shares down 43.7% year-to-date. The security has finished all but two of the past 10 weeks lower, with pressure from the 10-day moving average driving it to a June 16, roughly two-year low of $58.09.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Best stocks for October and worst stocks for October


Special Offers from Schaeffer's Trading Partners