GlobalFoundries Shares Pop As Analysts Initiate Coverage; See Up To 61% Upside

Multiple analysts initiated coverage on GLOBALFOUNDRIES Inc GFS. Credit Suisse analyst John Pitzer initiated coverage with an Outperform and $75 price target, implying a 20.8% upside. The analyst says the benefits of the company's 2018 strategic pivot from "bleeding edge" to "pervasive" are just now inflecting and sees semi-cyclical and foundry secular tailwinds for GlobalFoundries.

• Citi analyst Christopher Danely initiated coverage with a Buy rating and $75 price target. 
• The analyst expects the company to experience the most significant margin and earnings expansion in the semiconductor group, with gross margin expanding from 14% in 2021 to 30% in 2023, driven by higher pricing and restructuring initiatives.
• Needham analyst Rajvindra Gill initiated coverage with a Buy and a price target of $85, implying a 36.9% upside.
• JP Morgan analyst Harlan Sur initiated coverage with an Overweight and a price target of $80, implying a 28.8% upside.
• Cowen analyst Krish Sankar initiated coverage with an Outperform and $80 price.
• Raymond James analyst Chris Caso initiated coverage with an Outperform and $80 price target.
• Jefferies analyst Mark Lipacis initiated coverage with a Buy rating and a price target of $87, implying a 40.1% upside.
• Baird analyst Tristan Gerra initiated coverage with an Outperform and a $100 price target, implying a 61% upside.
• Price Action: GFS shares traded higher by 5.46% at $65.5 in the premarket session on the last check Monday.