Baird Raises GlobalFoundries Price Target to $60 (February)

Baird analyst Tristan Gerra raised the price target on GlobalFoundries (NASDAQ: GFS) to $60.00 (from $40.00) while maintaining an Outperform rating.

“Silicon photonics, satellite, optical networking represent key revenue and mix drivers for this year and for the medium-term, while automotive momentum continues driven by share and content gains, industrial is returning to growth this year, and smartphone has stabilized.

Geo-dependable related design win footprint is now well above $3B.

Net, GF should benefit from the currently-unfolding upcycle along with expansion in high-growth segments and the return to a favorable pricing environment, which along with mix and higher utilization rates will drive gross margin expansion.

Outperform-rated.”

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