BUZZ-Wolfspeed falls on Q4 revenue forecast below estimates

Reuters05-02

** Chipmaker Wolfspeed's shares drop 11.5% to $23.3 in premarket trading

** Co forecasts Q4 rev of $185 mln-$215 mln, midpoint of which is below est. $211.66 mln as automakers grapple with high inventory levels amid slower-than-expected EV sales growth - LSEG data

** Posts Q3 rev of $200.70 million vs est. $201.11 mln

** At least eight brokerages cut PT; TD Cowen downgrades to "hold" from "buy"

** "WOLF is facing three distinct headwinds with no perceived strategic changes to address the concerns- small share in power discretes industry, weaker EV volume growth and high fixed cost structure," notes BofA Global Research

** Avg recommendation of 20 brokerages is equivalent of a "hold"; median PT is $30 - LSEG

** As of last close, WOLF down 40% vs ~8% gain in Philadelphia SE Semiconductor index

(Reporting by Ankika Biswas in Bengaluru)

((Ankika.Biswas@thomsonreuters.com))

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