FormFactor downgraded to Neutral from Buy at B. Riley

B. Riley downgraded FormFactor (FORM) to Neutral from Buy with a price target of $34, down from $64. The company’s Q4 report modestly missed estimates and its Q1 outlook much more so despite ongoing DRAM high bandwidth memory strength, the analyst tells investors in a research note. The firm says FormFactor cited unusually weak PCs and smartphones as probe card demand culprits, and lower volume triggers a gross margin retreat back into the high 30s. Riley cites elevated end customer uncertainty for the downgrade.