Joseph Moore, an analyst from Morgan Stanley, maintained the Hold rating on GlobalFoundries Inc. The associated price target is $35.00.
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Joseph Moore’s rating is based on a combination of factors impacting GlobalFoundries Inc. The company is experiencing challenges in its mobile segment due to the competitive foundry market conditions from previous years. Although these challenges appear to be subsiding, the growth in other areas has not yet matured enough to fully counterbalance the subdued trends. While modest growth is anticipated for the upcoming year, significant maturity in these growth areas is not expected until 2027.
Furthermore, the outlook for 2026 is cautiously optimistic, with potential growth in automotive, satellite communication, and silicon photonics markets, which are expected to offer higher margins. However, the mobile business remains a concern due to pricing adjustments and customer concentration issues, which may lead to difficult year-over-year comparisons and revenue uncertainties. These factors contribute to the Hold rating, as the company navigates these challenges and opportunities.
In another report released yesterday, Citi also reiterated a Hold rating on the stock with a $35.00 price target.