FormFactor stock rating upgraded by B.Riley on HBM strength

Investing.com - B.Riley upgraded FormFactor (NASDAQ:FORM) from Neutral to Buy and raised its price target to $47.00 from $34.00 on Friday. The company, currently trading at $38.36 with a market capitalization of $2.96 billion, maintains a "GOOD" financial health score according to InvestingPro analysis.

The upgrade comes as B.Riley gained increased confidence in FormFactor’s efforts to improve gross margins back to target levels of 47% through operational improvements and workflow reimagining, addressing what had been a financial execution weakness. Currently maintaining a gross margin of 38.68% and a strong current ratio of 4.24, the company shows solid financial fundamentals. InvestingPro analysis reveals 12 additional key financial metrics and insights available for subscribers.

B.Riley highlighted FormFactor’s robust DRAM HBM (High Bandwidth Memory) strengths as defensively positioned with high market share, while noting emerging opportunities in Foundry Logic with potential Nvidia share expansion and AMD program additions.

The firm also pointed to FormFactor’s established strengths with TSMC across various mobile platforms and sees a favorable probe card intensity tailwind amid broad leading-edge 2nm C26 chip adoption at TSMC.

B.Riley emphasized FormFactor’s growing incumbent advantage within Nvidia’s supply chain, citing the pressures of annual new product pacing and FormFactor’s higher voltage capability technology.

In other recent news, FormFactor Inc. reported its Q2 2025 financial results, showing a mixed performance. The company’s revenue reached $195.8 million, surpassing the forecast of $190.17 million, which indicates stronger-than-expected sales. However, earnings per share (EPS) fell short of projections, coming in at $0.27 against the anticipated $0.30. Additionally, FormFactor announced a leadership change with Aric McKinnis being appointed as the new Senior Vice President and Chief Financial Officer. McKinnis has been with FormFactor since August 2019, previously serving as Vice President and Corporate Controller. He takes over from Shai Shahar, who resigned but will remain with the company as Senior Vice President, Executive Advisor until the end of the year. These developments reflect ongoing adjustments within FormFactor as it navigates the current fiscal landscape.

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