Needham & Company Downgrades FormFactor (FORM) to Buy

Needham & Company downgraded FormFactor (NASDAQ: FORM) from Strong Buy to Buy with a price target of $17.00 (from $20.00).

Analyst Y. Edwin Mok commented, "FORM rating goes to Buy from Strong Buy following several reports suggesting slower growth ahead. While we remain constructive on FORM's long-term growth potential, admittedly after Intel [Buy, Bolton] confirmed it pushed out the 10nm ramp from 2H18 to 2019, we are less confident in a sizable 2H18 rebound in Street estimates. Additionally, recent reports on the weakness in the smartphone market could further limit FORM's near-term growth potential. With other end market drivers such as Advanced packaging, Automotive and broad based semi remains strong, we think all is not lost for FORM. We think a Buy rating is more appropriate here, and we cut our PT from $20 to $17 on a CY19 P/E (w/ SC) of 16x.."

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 $13.75 yesterday.

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