GlobalFoundries downgraded on lack of catalysts at Susquehanna

Susquehanna analyst Mehdi Hosseini downgraded GlobalFoundries to Neutral from Positive with a price target of $48, down from $65. Although downside risk to the consensus estimates appears to be limited, a lack of potential upside and near-term catalysts should negatively weigh on the share price, the analyst tells investors in a research note. The firm says that while GlobalFoundries’ revenue is expected to improve from the first half of 2024 into the second half, it is the moderate slope of the recovery that has led to estimate reduction. It believes the company’s earnings per share power will be limited to $3.00, at best, until GlobalFoundries can demonstrate it can execute again with content growth and product diversification.