BofA Securities Raises GlobalFoundries Price Target to $60

BofA Securities analyst Vivek Arya raised the price target on GlobalFoundries (NASDAQ: GFS) to $60.00 (from $45.00) while maintaining an Underperform rating.

“MarQ sales in-line with Street while pf-EPS 20% ahead on ~200bps beat to GM (29%; margin-accretive mix shift). JunQ sales/pf-EPS 1%/9% above consensus.

We recognize the progress GFS has made in reshaping the corporate mix towards durable secular growth markets like Auto (21% of sales) and Coms Infra/Data Center (11% of sales) where SiPho revenue is on track to double in CY26.

However, the 34% of sales exposed to Smart Mobile could decline HSD % YoY in CY26 due to demand destruction which is a headwind to overall topline growth.

This means that GFS may only grow ~5-6% YoY in CY26 but this includes the inorganic benefit of AMF ($70mn+ sales) and MIPS ($60- $100mn) so organic growth is likely closer to 4% YoY, well below the >25% growth rate of the overall semis industry.

May 7th’s Analyst Day could be a catalyst, but assuming the CY30 model mgmt. introduces incorporates 10-12% revenue CAGR and 40% EBIT margins (same as prior LT model), EPS power may only be $4-$5.

For reference, industry leader TSMC trades at roughly~16x CY30 EPS and a similar multiple on potential GFS LT earnings suggest limited upside.

We make minor adjustments to our CY26/CY27E sales but leave them mostly unchanged while CY26/27E pf-EPS are tweaked -1%/+6%.

We raise our PO to $60 (from $45), now on 12x EV/EBITDA (from 9x before), in-line with the median across a cohort of foundries, analog, and mobile names while also crediting rising AI exposure.

Maintain Underperform.”

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