TD Cowen analyst Krish Sankar has maintained their neutral stance on FORM stock, giving a Hold rating on February 4.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Krish Sankar has given his Hold rating due to a combination of factors impacting Formfactor. The company’s December 2024 quarter results were slightly below expectations, primarily due to weaker demand for foundry/logic probe cards, although this was partially offset by record sales in DRAM probe cards. Despite the addition of a new HBM customer and anticipated ramp-up in HBM3E/4 later in the year, the March 2025 quarter guidance fell short, with revenue and EPS projections lower than market expectations.
Although there are positive signs, such as potential gross margin improvements as revenue scales and a $60 million investment in FICT Limited to expand advanced packaging capabilities, there are also challenges. These include reduced visibility due to short lead times for consumable probe cards, Intel’s reduced significance as a customer, and gross margin pressures from a product mix skewed towards DRAM. These mixed factors contribute to the Hold rating, reflecting cautious optimism but recognizing ongoing uncertainties.
According to TipRanks, Sankar is a 5-star analyst with an average return of 20.9% and a 60.70% success rate. Sankar covers the Technology sector, focusing on stocks such as Micron, Pure Storage, and Kulicke & Soffa.
In another report released on February 4, Stifel Nicolaus also reiterated a Hold rating on the stock with a $48.00 price target.