The Analyst Landscape: 5 Takes On GLOBALFOUNDRIES

Analysts' ratings for GLOBALFOUNDRIES GFS over the last quarter vary from bullish to bearish, as provided by 5 analysts.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for GLOBALFOUNDRIES, presenting an average target of $68.6, a high estimate of $75.00, and a low estimate of $65.00. Experiencing a 8.53% decline, the current average is now lower than the previous average price target of $75.00.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of GLOBALFOUNDRIES among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to GLOBALFOUNDRIES. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of GLOBALFOUNDRIES compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of GLOBALFOUNDRIES's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on GLOBALFOUNDRIES analyst ratings.

Unveiling the Story Behind GLOBALFOUNDRIES

GlobalFoundries is a top-five contract semiconductor manufacturer globally. It was originally the manufacturing arm of Advanced Micro Devices before it was spun out in 2009. The foundry sells chips into a range of end markets including smartphones, PCs, Internet of Things, data centers, automotive, industrial, and so on, but primarily focuses on more mature process technologies. Until 2021, the firm was privately held by Mubadala Investment, the sovereign wealth fund of the United Arab Emirates. GlobalFoundries merged with Chartered Semiconductor Manufacturing in 2009 and acquired IBM's chipmaking business in 2015. GF is headquartered in Malta, New York, and employs about 14,000 people.

A Deep Dive into GLOBALFOUNDRIES's Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: GLOBALFOUNDRIES's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -10.7%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: GLOBALFOUNDRIES's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 13.44%, the company may face hurdles in effective cost management.

Return on Equity (ROE): GLOBALFOUNDRIES's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.34%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): GLOBALFOUNDRIES's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.4%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: GLOBALFOUNDRIES's debt-to-equity ratio is below the industry average at 0.25, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.