Morgan Stanley Sees Near-Term Headwinds for Intermolecular Due to Global Foundries Suspension

In a report published Friday, Morgan Stanley analyst Joseph Moore reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “We believe that Global Foundries suspended its internal development of 20nm technology, causing it to cancel/delay IMI CDP activities for 2014. Our checks suggest that GF will adopt Samsung's process to produce 20nm ICs for Apple instead of pursuing its own roadmap, though GF's roadmap to support its other customers remains unclear. This hurts 2014 ests, though getting GF business back remains a potential driver for next year. The CDP extension with Guardian is an offsetting positive, and could increase revenue potential from this source by 20%. We expect near- term headwinds as IMI struggles to overcome lost revenues before realizing volume-based licensing and royalties.” Intermolecular closed on Thursday at $4.02.