Needham analyst Charles Shi has maintained their neutral stance on FORM stock, giving a Hold rating today.
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Charles Shi has given his Hold rating due to a combination of factors, including FormFactor’s unexpected guidance for the first quarter of 2025, which fell below consensus expectations. This unexpected dip marks a deviation from the previously stable quarterly run rate of about $200 million that was first achieved in the second quarter of 2024.
Despite this setback, Charles does not interpret the weak guidance as the start of a downturn but rather as a temporary issue within the ongoing cycle. He acknowledges the presence of positive indicators that suggest a potential recovery, which could help the company regain its $200 million run rate. However, due to this unforeseen challenge, he believes the opportunity for FormFactor to surpass the $200 million quarterly level in the current cycle has diminished, prompting a more cautious outlook and the decision to maintain a Hold rating.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $35.00 price target.