GlobalFoundries downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded GlobalFoundries to Neutral from Overweight with a price target of $56, down from $65. The analyst says specialty and mature node foundry manufacturing activity in a broad set of markets continues to decline, potentially lagging the semiconductor industry recovery trends by two quarters, which is not adequately reflected in current consensus 2024 expectations. In addition, GlobalFoundries’ FinFET customers at 12nm-16nm nodes are migrating away to lower geometry nodes, which the company does not support, and it may not be back filling these migrations a quickly as it is losing them, the analyst tells investors in a research note. As such, JPMorgan believes the stock will, at best, perform in-line with its coverage universe over the next 12-18 months.