Wolfspeed (WOLF) stock rallied on Wednesday after the semiconductor supplies and equipment company received praise from research firm Citrini Research. The big news here was Citrini’s recommendation of WOLF stock. The research firm called the company a “crouching tiger getting ready to reveal a dragon.”
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Citrini argued that Wolfspeed stock shouldn’t be valued just based on what the company’s replacement value theoretically is. Instead, it said that the stock price should take into account “the fact that it’s not going to be replaced.” As is the case with many semiconductor-related stocks, Wolfspeed is likely to benefit from the ongoing AI boom.
Investors will note that Wolfspeed has been through a rough period recently. The company filed for Chapter 11 bankruptcy last year and came out of it in September. Since then, the stock has performed well, suggesting that shareholders have faith in the company after it reduced its debt by roughly 70% via the bankruptcy filing.
Wolfspeed Stock Movement Today
Wolfspeed stock was up 12.25% on Wednesday, extending a massive 246.35% year-to-date rally. The stock has also surged 143.06% over the past 12 months.
Citrini’s coverage of WOLF stock triggered heavy trading of the shares today. This saw nearly 14 million shares change hands today, compared to a three-month average daily trading volume of about 1.67 million shares.
Is Wolfspeed Stock a Buy, Sell, or Hold?
Turning to Wall Street, only one analyst has covered Wolfspeed over the past three months. Five-star Susquehanna analyst Christopher Rolland rated the stock as Hold and increased his price target to $40 from $28 earlier this month. This WOLF price target represents a potential 34.26% downside for the shares. It’s possible Citrini’s comments on Wolfspeed will trigger additional coverage of the company’s shares.
