Needham & Company Looks Through FormFactor's (FORM) Weak Guidance

Needham & Company analyst Charles Shi reiterated a Buy rating and $54.00 price target on FormFactor (NASDAQ: FORM) after the company reported a modest beat for 4Q21 and guided slightly below consensus for 1Q22 mostly due to supply chain challenges.

The analyst stated "Relative to SemiCap peers, FORM's 1Q22 miss is minuscule in our view, and actually demonstrates its strong execution through a challenging supply-chain environment. The highlight of the quarter is the strength in the "foundry HPC" business, which we believe is associated with Apple's new M-series ramp this year. Meanwhile, management maintains CapEx plans elevated in 2022 and aims to "meet and exceed" the $850MM revenue, signaling the strengthening demand environment in late 2022 and 2023 due to Intel's Meteor Lake ramp. While the quarter is uneventful, we sense management's tone is incrementally bullish, and encourage investors to buy FORM before the inflection point in 2H22."

For an analyst ratings summary and ratings history on FormFactor click here. For more ratings news on FormFactor click here.

Shares of FormFactor closed at $42.88 yesterday.

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