GlobalFoundries Upgraded to Buy as Analysts Adjust Ratings
GlobalFoundries (NASDAQ:GFS) has received an upgrade from Wall Street Zen, moving its rating from “hold” to “buy” in a report issued on August 6, 2023. This is part of a broader reassessment by various analysts, with different firms adjusting their target prices and ratings for the semiconductor company.
Analysts at UBS Group lowered their price target for GlobalFoundries from $43.00 to $37.00, maintaining a “neutral” rating. In contrast, Argus initiated coverage with a “buy” rating and set a target price of $52.00. Wedbush also reduced its target price from $48.00 to $40.00, assigning an “outperform” rating. Arete upgraded its position as well, shifting from a “sell” to a “neutral” rating with a price target of $37.00. Meanwhile, The Goldman Sachs Group began coverage with a “neutral” rating and a target price of $40.00.
Currently, six investment analysts rate GlobalFoundries as “buy,” while eight analysts have assigned a “hold” rating. According to MarketBeat.com, the company has a consensus rating of “hold” with an average target price of $43.79.
Recent Earnings Performance
On August 5, 2023, GlobalFoundries reported its quarterly earnings, revealing earnings per share (EPS) of $0.42. This exceeded analysts’ consensus estimate of $0.36 by $0.06. The company reported revenues of $1.69 billion, slightly above the expected $1.68 billion. This performance marks a 3.4% increase in revenue compared to the same quarter last year, when the company posted an EPS of $0.38.
Looking ahead, GlobalFoundries has provided guidance for Q3 2025, projecting an EPS between $0.330 and $0.430. Analysts forecast the company will achieve an EPS of $1.31 for the current fiscal year.
Institutional Investment Trends
Recent changes in institutional investment reflect growing interest in GlobalFoundries. Quantinno Capital Management LP acquired a new position worth $423,000 in the fourth quarter. Toronto Dominion Bank significantly increased its stake by 110.2%, now holding 16,500 shares valued at $708,000 after purchasing additional shares. GF Fund Management Co. Ltd. also entered a new position valued at approximately $4.5 million.
Lansforsakringar Fondforvaltning AB publ purchased a new stake valued at around $204,000. Furthermore, GAMMA Investing LLC significantly boosted its holdings by 9,009.1% in the first quarter, now owning 24,139 shares valued at $891,000.
GlobalFoundries, a leading semiconductor foundry, offers a range of wafer fabrication services and technologies. The company manufactures various semiconductor devices, including microprocessors and power management units, serving a vital role in the global technology landscape.
With these recent developments, GlobalFoundries positions itself strategically in the semiconductor market, reflecting shifting analyst sentiments and institutional interest.
