Analyst Scoreboard: 7 Ratings For GLOBALFOUNDRIES

Ratings for GLOBALFOUNDRIES GFS were provided by 7 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for GLOBALFOUNDRIES, revealing an average target of $63.43, a high estimate of $70.00, and a low estimate of $55.00. A decline of 5.33% from the prior average price target is evident in the current average.

Decoding Analyst Ratings: A Detailed Look

The standing of GLOBALFOUNDRIES among financial experts becomes clear with a thorough analysis 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of GLOBALFOUNDRIES compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of GLOBALFOUNDRIES's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into GLOBALFOUNDRIES's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic 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.

Unraveling the Financial Story of GLOBALFOUNDRIES

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: GLOBALFOUNDRIES displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 0.11%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 14.94%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): GLOBALFOUNDRIES's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.53%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): GLOBALFOUNDRIES's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.54%, the company may face hurdles in achieving optimal financial performance.

Debt Management: GLOBALFOUNDRIES's debt-to-equity ratio is below the industry average. With a ratio of 0.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: Simplified

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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