GlobalFoundries price target lowered to $36 from $40 at Susquehanna

Susquehanna lowered the firm’s price target on GlobalFoundries (GFS) to $36 from $40 and keeps a Neutral rating on the shares. The firm said increased content in Auto and growing traction in emerging applications such as Satellite Communications are encouraging signs of diversification and long-term growth. These developments, coupled with positive impacts from Depreciation and improving utilization rates are contributing to a meaningful uplift in gross margins, targeting 30% by YE25. However, the sudden and unexpected re-emphasis of China, plus scaling and synergy implications of the recently announced MIPS acquisition, introduce new layers of uncertainty.