U.S. stocks edge higher; solid earnings season continues
Investing.com - Raymond (NSE:RYMD) James has lowered its price target on GlobalFoundries Inc. (NASDAQ:GFS) to $50.00 from $55.00 while maintaining an Outperform rating on the semiconductor manufacturer. The stock, which has declined over 10% in the past week according to InvestingPro data, currently trades at $32.80.
The adjustment follows GlobalFoundries’ June quarter results, which Raymond James described as "roughly in line" with expectations despite some volatility in top-line performance.
Raymond James noted that key business metrics are "tracking in the right direction," with both utilization and margin expected to improve slightly through the second half of the year.
The firm acknowledged that "mixed end-market demand signals" are creating "greater-than-expected noise" for revenue expectations, but suggested the market reaction to the results was "somewhat overdone."
Raymond James continues to see long-term value in GlobalFoundries’ "diversified manufacturing footprint" that includes significant U.S.-based assets, along with the company’s "growing portfolio of specialty processes."
In other recent news, GlobalFoundries Inc. reported its second-quarter 2025 earnings, exceeding analysts’ expectations. The company achieved an earnings per share (EPS) of $0.42, surpassing the forecasted $0.36, resulting in a 16.67% surprise. Revenue for the quarter reached $1.69 billion, slightly above the anticipated $1.68 billion. Despite these positive earnings results, the company’s stock experienced a decline in pre-market trading. Broader market concerns and specific challenges in the semiconductor sector were noted as contributing factors. The company’s performance highlights its ability to outperform financial projections, even amidst industry challenges. Analysts’ reactions to these results have not been specified in the recent updates. GlobalFoundries continues to navigate the evolving landscape of the semiconductor industry.
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