Wedbush downgrades GlobalFoundries amid elongated down cycle

As previously reported, Wedbush downgraded GlobalFoundries (GFS) to Neutral from Outperform with a price target of $40, down from $42. While the firm believes that GlobalFoundries has a path to a model with stronger revenues, improved utilization, and better margins on improved end market fundamentals and a shift towards local supply chains, it also believes recent developments have elongated the timeframe around when those catalysts might play out, the analyst tells investors. Recent checks in Taiwan suggest that industrial and auto demand remains relatively weak, with no anticipation of any near-term recovery, the analyst added.