Update shared on01 Aug 2025
Fair value Increased 5.77%Despite a notable reduction in forecast revenue growth, Wolfspeed’s higher future P/E multiple suggests increased confidence in its earnings potential, leading to a modest increase in the consensus price target from $3.90 to $4.12.
What's in the News
- Wolfspeed, Inc. filed for Chapter 11 bankruptcy protection on June 30, 2025, listing assets and liabilities in the $1–10 billion range; the U.S. Bankruptcy Court approved joint administration of its bankruptcy cases and a combined hearing for its reorganization plan (Key Developments, Periodicals).
- The company's pre-packaged reorganization plan proposes full cash payment for administrative and unsecured claims, partial recoveries for secured and convertible notes holders (86% and 30% respectively), a 29% recovery for Renesas claims, and substantial dilution or cancellation of existing equity (Key Developments).
- Following the bankruptcy filing, Wolfspeed was dropped from major indices including the S&P 600, S&P Composite 1500, S&P Global BMI Index, S&P TMI Index, S&P 1000, and all related Russell and S&P sub-indices (Key Developments, Periodicals).
- Ralliant Corp. replaced Wolfspeed in the S&P SmallCap 600 on July 1, 2025, as Wolfspeed was no longer eligible for inclusion following its bankruptcy filing (Periodicals).
- Executive changes included the interim appointment of Kevin Speirits as CFO effective May 30, 2025, and the subsequent appointment of Gregor van Issum as permanent CFO, effective September 1, 2025, to oversee the company’s financial restructuring (Key Developments).
Valuation Changes
Summary of Valuation Changes for Wolfspeed
- The Consensus Analyst Price Target has risen from $3.90 to $4.12.
- The Consensus Revenue Growth forecasts for Wolfspeed has significantly fallen from 15.1% per annum to 12.2% per annum.
- The Future P/E for Wolfspeed has significantly risen from 6.45x to 7.39x.
Disclaimer
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