Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Northland raised its price target on FormFactor (NASDAQ:FORM) to $44.00 from $23.00 on Thursday, while maintaining a Market Perform rating on the semiconductor testing equipment provider. The stock is currently trading at $47.72, just 6% below its 52-week high of $50.79, with InvestingPro data showing it has surged 69.58% over the past six months.
The research firm cited FormFactor ’s recent earnings beat and raised guidance as key factors behind the significant price target increase. Northland noted that the company is beginning to see gross margin expansion driven by automation, yield improvements, and cycle-time reductions. FormFactor’s current gross profit margin stands at 38.68%, according to InvestingPro data, with the company aiming for further improvements.
FormFactor faces a potential 2% impact from tariffs that may prevent the company from reaching its target model of 47% gross margin in calendar year 2026, according to Northland. The firm highlighted that FormFactor’s recently acquired fabrication facility in Texas is expected to drive longer-term gross margin improvement.
Northland projects demand for FormFactor’s products to remain strong through 2026, supported by artificial intelligence demand and broadening requirements across PC and mobile phone segments. The semiconductor testing equipment market has seen increased activity as chip manufacturers expand production capabilities.
The price target adjustment reflects both higher earnings estimates and multiple expansion for FormFactor shares, Northland explained in its research note. InvestingPro analysis indicates FormFactor is trading at elevated multiples with a P/E ratio of 82.95 and EV/EBITDA of 40.71, suggesting the stock may be overvalued compared to its Fair Value. InvestingPro offers 13 additional tips and comprehensive metrics in its detailed Research Report for FormFactor, available with a subscription.
In other recent news, FormFactor Inc. reported its third-quarter earnings for 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.33, exceeding the forecasted $0.25. Additionally, FormFactor’s revenue reached $202.7 million, surpassing the anticipated $199.97 million. Following this strong performance, Stifel raised its price target for FormFactor to $42.00 from $35.00, while maintaining a Hold rating. The firm highlighted the company’s strong third-quarter results and increased guidance for the fourth quarter as reasons for the adjustment. High Bandwidth Memory (HBM) was identified as the primary growth driver, reaching record levels in the third quarter. These developments reflect positively on FormFactor’s recent performance and future outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.