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0 -0.000488814114223426 -0.000773008366678808 -0.000488814114223426 0.00121635140050927 0.000591124045107146 -0.00162559112404516 -0.00074458894143333
Stock impact report

Wedbush Downgrades GlobalFoundries on Timing [Yahoo! Finance]

GlobalFoundries Inc. (GFS) 
Company Research Source: Yahoo! Finance
Wedbush cut the stock to Neutral and lowered its price target to $40, which pushed shares about 2.2% lower in premarket trading. The key issue isn't that the long-term story is broken. It's timing. Analyst Matt Bryson said the recovery GlobalFoundries needs is taking longer than expected, and investors shouldn't expect a quick turnaround. Warning! GuruFocus has detected 3 Warning Sign with GFS. Is GFS fairly valued? Test your thesis with our free DCF calculator. Demand is the problem right now. Smartphone makers are cutting build plans as rising memory prices push costs higher and buyers get more cautious. Industrial and auto demand isn't helping either, with no clear rebound in sight. That matters because about half of GlobalFoundries' revenue comes from those areas. There are still positives. Its U.S. and European footprint is a real advantage, and margins are holding up better than expected. But for now, this is a waiting game, not a momentum story. Show less Read more
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