-- GlobalFoundries (GFS) could see a "faster inflection" towards its targets, driven by expected gains in 2027 and 2028, Wedbush Securities said in a Friday note.
The company set financial targets of delivering a double-digit revenue growth through 2030 and beyond, 40% in gross margins by 2028, and a capital return framework of up to 50% of trailing 12-month free cash flow allocated for dividends and share buybacks, according to the note.
"We see this outlook as both believable and compelling," Wedbush said. The targets are based on increasing demand for higher margin specialty technology and GlobalFoundries' core capabilities fulfilling new market requirements, given its focus on specialty tech and diversified manufacturing footprint, the brokerage added.
Wedbush Securities reiterated its neutral rating and $72 price target on GlobalFoundries.
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