Christopher Danely, an analyst from Citi, reiterated the Hold rating on GlobalFoundries Inc. The associated price target is $35.00.
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Christopher Danely has given his Hold rating due to a combination of factors impacting GlobalFoundries Inc. While the company reported solid third-quarter results, driven by strong performance in the mobile end-market, there are concerns about future earnings. Despite an increase in gross margin, the company’s guidance for the fourth quarter earnings per share (EPS) fell short of expectations due to a rise in operating expenses.
Danely notes that although the revenue outlook for the fourth quarter is positive, the anticipated increase in operating expenses, particularly in research and development, is expected to offset the benefits of higher gross margins. Consequently, this has led to a reduction in the EPS estimates and a lowering of the price target from $37.00 to $35.00. These factors contribute to the reiteration of a Neutral rating, suggesting a cautious approach to the stock.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $36.00 price target.
GFS’s price has also changed moderately for the past six months – from $39.020 to $34.170, which is a -12.43% drop .