FormFactor price target lowered to $50 from $55 at DA Davidson

DA Davidson lowered the firm’s price target on FormFactor (FORM) to $50 from $55 and keeps a Buy rating on the shares. The firm cites the company’s “disappointing” Q1 guidance, with projected sequential weakness coming from the cessation of domestic Chinese business, some seasonality in the Systems business, and, most importantly, the lack of a recovery in the high volume PC and mobile chip markets, the analyst tells investors in a research note. The resulting product mix – higher memory, lower logic – will also have a negative impact on margins, the firm added.