Stifel Reiterates Buy on GlobalFoundries, $60 PT
Stifel analyst Sahej Singh reiterated a Buy rating and $60 price target on GlobalFoundries Inc.
(NASDAQ: GFS).
“GFS finalized a $375M quantum CHIPS R&D award and will issue Commerce 9,907,399 shares at $37.85/share, or ~1.75% of the diluted base, well above the ~1% investors expected.
The gap is more so mechanical, with the fixed award converting at a ~15% discount to the reference close, making ownership inversely proportional to the share price. On the same template at ~$45, we estimate the pending $300M SiPho LOI takes cumulative ownership to ~3.14%.
We view the EPS dilution as small against the funding and geopolitical standing gained. Therein, the more consequential read is game theory.
GFS is now co-owned by Abu Dhabi and Washington, the two key sovereign pools underwriting some of the largest AI compute buildouts.”
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