Morgan Stanley analyst Joseph Moore maintained a Hold rating on GlobalFoundries Inc (GFS – Research Report) today and set a price target of $42.00.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Joseph Moore has given his Hold rating due to a combination of factors affecting GlobalFoundries Inc. The company’s revenue guidance for the first quarter fell short of expectations, highlighting the modest pace of acceleration in fundamentals. Seasonal trends across end markets have been weaker, and some anticipated drivers such as tariff PC and consumer electronics pull-ins were not as significant as other challenges in the demand environment.
Despite these challenges, there are positive indicators for the future. GlobalFoundries is projected to achieve a gross margin of 30% by the end of 2025, assuming improvements in utilization rates. Additionally, the company anticipates growth in the automotive sector, which remains promising despite some geopolitical uncertainties. Overall, while there are constructive elements for long-term growth, the near-term outlook remains cautious, justifying the Hold rating.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $45.00 price target.