FormFactor downgraded to Market Perform at Northland on valuation

As previously reported, Northland analyst Gus Richard downgraded FormFactor to Market Perform from Outperform with an unchanged price target of $32. While the ramp of HBM 3 is helping FormFactor’s DRAM revenue, AI is not driving its foundry and logic revenue growth, while 50% of semiconductor revenue is from PCs and cell phones and demand for both is weak, says the analyst, who is expecting “a W shape semiconductor recovery” and cites valuation for the downgrade.