FormFactor stock price target raised to $35 from $31 at Stifel on HBM growth

Investing.com - Stifel raised its price target on FormFactor (NASDAQ:FORM) to $35.00 from $31.00 on Monday, while maintaining a Hold rating on the semiconductor testing equipment provider. The company, currently trading at $38.14, has seen a significant 42.5% surge over the past six months, though it trades at a relatively high P/E ratio of 67.4. According to InvestingPro analysis, the stock is currently fairly valued based on its comprehensive Fair Value model.

The price target increase reflects FormFactor’s strong position in high bandwidth memory (HBM) testing, with HBM revenue tracking more than 15% higher year-over-year in the first half of 2025.

FormFactor’s overall revenue is tracking relatively flat year-to-date, which Stifel attributes to muted smartphone shipment volumes and a shift toward lower-end PCs in the product mix.

The company has begun ramping up sales of probe cards to test new HBM4 designs in the second half of 2025, strengthening its market position with key customer SK Hynix.

Stifel expects FormFactor’s growth visibility to improve in late 2025 and into 2026, driven by the adoption of additional test insertions for full HBM stacks and expansion to new customers including Micron.

In other recent news, FormFactor reported its Q2 2025 financial results, showcasing mixed outcomes. The company’s revenue reached $195.8 million, exceeding the forecasted $190.17 million, but earnings per share (EPS) fell short at $0.27 against an anticipated $0.30. Additionally, FormFactor made a significant leadership change by appointing Aric McKinnis as the new Chief Financial Officer, succeeding Shai Shahar. Shahar will remain with the company as Senior Vice President, Executive Advisor until the end of 2025. In a separate development, B.Riley upgraded FormFactor’s stock rating from Neutral to Buy, increasing the price target to $47.00 from $34.00. This upgrade reflects increased confidence in the company’s efforts to improve gross margins to 47% through operational enhancements. These recent developments indicate a period of transition and potential growth for FormFactor.

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