GlobalFoundries initiated with an Outperform at Wolfe Research

Wolfe Research analyst Chris Caso initiated coverage of GlobalFoundries with an Outperform rating and $80 price target. The company is a leading foundry focused on legacy nodes and specialty processes, the analyst tells investors in a research note. The firm believes the “significant margin driver” comes as legacy depreciation rolls off in late 2024, and it expects GlobalFoundries’ free cash flow to improve meaningfully in 2024 as the company reduces capex and absorbs existing capacity.