Deutsche Bank analysts provided their outlook on Wolfspeed, Inc. (NYSE:WOLF) ahead of the upcoming Q2 results, scheduled to be announced on Jan 26.

The analysts expect Q2 sales to decline 7% quarter-over-quarter given well-understood execution challenges in the materials business as well as reduced availability of spare parts at the Durham site. According to the CEO, the first of these execution issues should recover quickly while the spare parts issue may take longer to fix.

Into Q3, the analysts expect sales to recover by 8% quarter-over-quarter and for non-GAAP gross margin to rise from 34% to 37%. The analysts lowered their price target to $80.00 from $90.00 while reiterating their Hold rating on the company’s shares.