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In a challenging market environment, FormFactor (NASDAQ:FORM) Inc. has seen its stock price touch a 52-week low, reaching a price level of $30.18, marking a significant 52-week range between $30.22 and $63.62. According to InvestingPro analysis, the company currently appears to be trading below its Fair Value. The semiconductor company, known for providing electrical test and measurement solutions, has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of -33.44%. Despite these challenges, FormFactor maintains strong fundamentals with a healthy current ratio of 4.61 and more cash than debt on its balance sheet. This downturn highlights the broader pressures within the tech sector, where companies are grappling with supply chain disruptions and a cooling demand for electronics. Investors are closely monitoring FormFactor’s performance as the industry navigates through these turbulent times. Analysts maintain a positive outlook, with target prices ranging from $34 to $52, suggesting potential upside. For deeper insights into FormFactor’s valuation and 10+ additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, FormFactor reported its fourth-quarter earnings, revealing an earnings per share (EPS) of $0.27, which was $0.02 below analyst estimates. Revenue for the quarter reached $189.5 million, slightly under the consensus forecast of $190.12 million, but marked a 12.7% increase from the previous year. Despite this growth, the company’s guidance for the first quarter of 2025 fell short, with expected EPS between $0.15 to $0.23, below the anticipated $0.33, and projected revenue between $165 million and $175 million, compared to the expected $192.93 million. This outlook led B.Riley to downgrade FormFactor from Buy to Neutral, citing weaker demand in the PC and smartphone markets and challenges with a major customer. The firm’s price target was significantly reduced to $34 from $64. Meanwhile, Stifel analysts maintained a Hold rating with a $48 price target, noting the company’s stable position in the High Bandwidth (NASDAQ:BAND) Memory (HBM) DRAM market despite subdued growth in other areas. Additionally, FormFactor announced a strategic partnership with Delft Circuits to enhance quantum computing scalability, integrating Delft’s Cri/oFlex® cabling into its test systems. The company also disclosed an acquisition of a minority interest in FICT Limited, which is not expected to materially impact operations.
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