GlobalFoundries price target lowered to $38 from $42 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on GlobalFoundries (GFS) to $38 from $42 and keeps an Equal Weight rating on the shares. There were “no surprises on the quarter” and despite the uncertain environment for semis, not much appears to be changing for GlobalFoundries near term with numbers in line, and commentary mostly mirroring that of the Q4 call in February. The focus now shifts to strategic opportunities as customers increasingly look to GlobalFoundries’ differentiated footprint for supply diversity, the analyst tells investors. While “still positive” on the company’s positioning in the foundry space, lingering risks to pricing and to growth keep the firm Equal Weight despite the pullback, the analyst added.