By Sam Boughedda
GlobalFoundries Inc (NASDAQ:GFS) held its 2022 analyst day on Thursday, where it reiterated an 8-12% long-term revenue growth target, a 40% gross margin target, and a 25% operating margin.
The company's shares have jumped more than 10% during Friday's session.
A Citi analyst reiterated a Buy rating and $67 price target on GlobalFoundries shares following the investor day event. He told analysts in a note that they believe GlobalFoundries' targets are achievable but will take a while as they expect a correction.
"However, we believe the restructuring efforts should provide some buffer to the headwinds and eventually GFS will reach its margin targets. We continue to believe GFS is one of the best stories in semis with the biggest margin and EPS expansion in the group driven by restructuring," wrote the analyst. "GlobalFoundries stated its expectation for 2023 remains intact as it was able to offset the consumer weakness with strength from other end markets. However, we are seeing some signs of weakness in the auto/industrials end markets, and we believe the correction will impact GFS just like every other company in our coverage universe."
Elsewhere, a BofA analyst added the stock to the firm's U.S. 1 list, which is intended to represent a collection of BofA's best investment ideas that are drawn from the universe of Buy-rated, U.S.-listed stocks (including ADRs).