FormFactor (FORM) Drops 2.1% Amid Hedgeye's Short Call with 45% Downside Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Short Call Impact: Hedgeye analyst Felix Wang noted that FormFactor's stock has more than tripled from cycle lows, now trading at approximately 50x blended 2026/2027 earnings, indicating an extreme valuation with little margin for error.
- Skewed Market Expectations: Despite widespread anticipation for a significant beat-and-raise on February 4th, Intel's downward guidance has meaningfully undermined this setup, potentially leading to market disappointment.
- Increased Valuation Pressure: With fading HBM tailwinds, ongoing share losses, and elevated earnings expectations, Hedgeye estimates a 45% downside to fair value for FormFactor, presenting an asymmetric short opportunity.
- Changing Industry Dynamics: Amid a cooling environment in the semiconductor capital equipment sector, Hedgeye is reassessing its hedging strategies for FormFactor, suggesting that the challenges faced by the company will impact its future profitability.
Analyst Views on FORM
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
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 81.000
Low
42.00
Averages
57.00
High
78.00
Current: 81.000
Low
42.00
Averages
57.00
High
78.00
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.
