Evaluating GLOBALFOUNDRIES: Insights From 14 Financial Analysts

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Ratings for GLOBALFOUNDRIES GFS were provided by 14 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 6 7 0 0
Last 30D 1 0 0 0 0
1M Ago 0 2 4 0 0
2M Ago 0 0 1 0 0
3M Ago 0 4 2 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $58.57, a high estimate of $71.00, and a low estimate of $43.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 4.27%.

Investigating Analyst Ratings: An Elaborate Study

The standing of GLOBALFOUNDRIES among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Blayne Curtis Jefferies Lowers Buy $62.00 $67.00
Frank Lee HSBC Raises Hold $50.00 $43.00
Joseph Moore Morgan Stanley Raises Overweight $63.00 $62.00
Mehdi Hosseini Susquehanna Raises Neutral $50.00 $48.00
Frank Lee HSBC Lowers Hold $43.00 $56.00
Vivek Arya B of A Securities Lowers Neutral $55.00 $62.00
Mark Lipacis Evercore ISI Group Announces Outperform $71.00 -
C J Muse Cantor Fitzgerald Lowers Neutral $55.00 $70.00
C J Muse Cantor Fitzgerald Maintains Overweight $70.00 -
Mehdi Hosseini Susquehanna Lowers Neutral $48.00 $65.00
Tristan Gerra Baird Lowers Outperform $63.00 $70.00
Harlan Sur JP Morgan Lowers Neutral $55.00 $56.00
C J Muse Cantor Fitzgerald Maintains Overweight $70.00 -
Mehdi Hosseini Susquehanna Lowers Positive $65.00 $74.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to GLOBALFOUNDRIES. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of GLOBALFOUNDRIES compared to the broader market.
  • Price Targets: Gaining insights, analysts provide estimates for the future value of GLOBALFOUNDRIES's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of GLOBALFOUNDRIES's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on GLOBALFOUNDRIES analyst ratings.

Get to Know GLOBALFOUNDRIES Better

GlobalFoundries is a top-five contract semiconductor manufacturer globally. It was originally the manufacturing arm of Advanced Micro Devices before it was spun out in 2009. The foundry sells chips into a range of end markets including smartphones, PCs, Internet of Things, data centers, automotive, industrial, and so on, but primarily focuses on more mature process technologies. Until 2021, the firm was privately held by Mubadala Investment, the sovereign wealth fund of the United Arab Emirates. GlobalFoundries merged with Chartered Semiconductor Manufacturing in 2009 and acquired IBM's chipmaking business in 2015. GF is headquartered in Malta, New York, and employs about 12,000 people.

Financial Milestones: GLOBALFOUNDRIES's Journey

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: GLOBALFOUNDRIES's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -15.86%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: GLOBALFOUNDRIES's net margin excels beyond industry benchmarks, reaching 8.59%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): GLOBALFOUNDRIES's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.19%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.73%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.28, GLOBALFOUNDRIES adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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