FormFactor Inc (FORM) dropped 9.59% and hit a 5-day low amid negative analyst sentiment.
Hedgeye analyst Felix Wang issued a short call on FormFactor, highlighting that the stock's valuation is extreme at approximately 50x blended 2026/2027 earnings, with a potential 45% downside. The analyst pointed out that Intel's recent downward guidance has undermined market expectations for a significant earnings beat on February 4th, leading to increased valuation pressure and concerns about future profitability in the cooling semiconductor capital equipment sector.
The implications of this analysis suggest that investors should be cautious, as the combination of high valuation and negative industry dynamics could lead to further declines in FormFactor's stock price.
Wall Street analysts forecast FORM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FORM is 57.00 USD with a low forecast of 42.00 USD and a high forecast of 78.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
Wall Street analysts forecast FORM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for FORM is 57.00 USD with a low forecast of 42.00 USD and a high forecast of 78.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 72.550
Low
42.00
Averages
57.00
High
78.00
Current: 72.550
Low
42.00
Averages
57.00
High
78.00
Freedom Capital
Hold
initiated
$64
2026-01-27
New
Reason
Freedom Capital
Price Target
$64
AI Analysis
2026-01-27
New
initiated
Hold
Reason
Freedom Capital initiated coverage of FormFactor with a Hold rating and $64 price target. The firm is "quite comfortable" with the company's leading-edge product portfolio, position as a close collaborator with and trusted supplier to all major Western chipmakers, and capital deployment track record but "less enamored" with the idea that the 80% rise in share price since the company reported Q3 results has not negatively impacted the risk-reward trade-off, the analyst tells investors.
Citi
Buy
upgrade
$62 -> $96
2026-01-22
Reason
Citi
Price Target
$62 -> $96
2026-01-22
upgrade
Buy
Reason
Citi raised the firm's price target on FormFactor to $96 from $62 and keeps a Buy rating on the shares ahead of the December quarter report on February 4. Citi upped 2026 revenue estimates and expects investors to focus on FormFactor's gross margin improvement.
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B. Riley
B. Riley
maintain
$66 -> $78
2025-12-12
Reason
B. Riley
B. Riley
Price Target
$66 -> $78
2025-12-12
maintain
Reason
B. Riley raised the firm's price target on FormFactor to $78 from $66 and keeps a Buy rating on the shares. FormFactor's recent non-deal roadshow highlighted strong near- and long-term drivers, including robust DRAM growth, GPU/XPU diversification, and structural operational improvements supporting a gross margin inflection toward 47% in 2026, the analyst tells investors in a research note. These factors reinforce FormFactor as a top Semi Cap pick with attractive 12-month return potential, B. Riley says.
Cantor Fitzgerald
Matthew Prisco
Overweight
initiated
$75
2025-11-18
Reason
Cantor Fitzgerald
Matthew Prisco
Price Target
$75
2025-11-18
initiated
Overweight
Reason
Cantor Fitzgerald analyst Matthew Prisco initiated coverage of FormFactor with an Overweight rating and $75 price target. FormFactor's 68% rally since September has been fueled by strong HBM exposure, improving gross margins, and growing demand for advanced probe cards needed for increasingly complex AI chips, the analyst tells investors in a research note. The firm sees meaningful medium-term upside, with EPS potentially reaching ~$3 in 2027 and ~$4 in 2030 under reasonable scenarios, implying a discounted fair value around $75 based on a 25x multiple.
About FORM
FormFactor, Inc. is a provider of essential test and measurement technologies along the full semiconductor product lifecycle, from characterization, modeling, reliability, and design de-bug to qualification and production test. The Company provides a range of high-performance probe cards, analytical probes, probe stations, thermal systems, and cryogenic systems to both semiconductor companies and scientific institutions. Its products provide electrical and optical information from a variety of semiconductor and electro-optical devices and integrated circuits from early research, through development, to high-volume production. It operates in two segments: Probe Cards and the Systems. The Probe Cards segment includes sales of its probe cards and analytical probes. The Systems segment includes sales of its probe stations, thermal systems and cryogenic systems. It also offers optical probing technology for silicon photonics (SiPh) and co-packaged optics (CPO) wafer testing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
