Globalfoundries: Morgan Stanley Downgrades to Equal-Weight, PT to $35.
ByAinvest
Wednesday, Aug 6, 2025 12:31 pm ET1min read
GFS--
GlobalFoundries reported an earnings per share (EPS) of $0.42, beating the forecast by 16.67%. Revenue for Q2 2025 was $1.69 billion, slightly above expectations. Despite these positive results, the company's stock fell by 10.34% in pre-market trading, closing at $33.62 [2].
The company's strong financial performance is highlighted by a gross margin of 25.2% and an operating margin of 15.3%. GlobalFoundries secured nearly 200 design wins, doubling year-over-year, and expanded its presence in the automotive and communications markets [2].
However, the stock's decline can be attributed to broader market conditions and sector-specific concerns, such as supply chain disruptions and increased competition in the semiconductor industry. The company's balance sheet remains strong, with a current ratio of 2.51 and more cash than debt [2].
Morgan Stanley's downgrade reflects a cautious outlook on the company's ability to maintain its growth trajectory amidst industry challenges. The firm's Equal-Weight rating suggests a neutral stance, indicating that GlobalFoundries' performance is neither particularly strong nor weak [1].
Investors should closely monitor GlobalFoundries' performance in the coming quarters to assess the validity of Morgan Stanley's price target. The company's ability to navigate industry challenges and maintain profitability margins will be key factors in determining its long-term success.
References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-globalfoundries-beats-q2-2025-expectations-but-shares-fall-93CH-4170923
[2] https://www.marketbeat.com/instant-alerts/globalfoundries-inc-nysegfs-updates-q2-2025-earnings-guidance-2025-07-31/
MS--
Globalfoundries: Morgan Stanley Downgrades to Equal-Weight, PT to $35.
Morgan Stanley has recently downgraded GlobalFoundries Inc. (NYSE: GFS) to an Equal-Weight rating and reduced its price target to $35 from $40. This decision comes on the heels of the company's second-quarter 2025 earnings report, which exceeded analysts' expectations but saw a significant drop in stock price [2].GlobalFoundries reported an earnings per share (EPS) of $0.42, beating the forecast by 16.67%. Revenue for Q2 2025 was $1.69 billion, slightly above expectations. Despite these positive results, the company's stock fell by 10.34% in pre-market trading, closing at $33.62 [2].
The company's strong financial performance is highlighted by a gross margin of 25.2% and an operating margin of 15.3%. GlobalFoundries secured nearly 200 design wins, doubling year-over-year, and expanded its presence in the automotive and communications markets [2].
However, the stock's decline can be attributed to broader market conditions and sector-specific concerns, such as supply chain disruptions and increased competition in the semiconductor industry. The company's balance sheet remains strong, with a current ratio of 2.51 and more cash than debt [2].
Morgan Stanley's downgrade reflects a cautious outlook on the company's ability to maintain its growth trajectory amidst industry challenges. The firm's Equal-Weight rating suggests a neutral stance, indicating that GlobalFoundries' performance is neither particularly strong nor weak [1].
Investors should closely monitor GlobalFoundries' performance in the coming quarters to assess the validity of Morgan Stanley's price target. The company's ability to navigate industry challenges and maintain profitability margins will be key factors in determining its long-term success.
References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-globalfoundries-beats-q2-2025-expectations-but-shares-fall-93CH-4170923
[2] https://www.marketbeat.com/instant-alerts/globalfoundries-inc-nysegfs-updates-q2-2025-earnings-guidance-2025-07-31/
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet