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Investing.com - Cantor Fitzgerald initiated coverage on FormFactor (NASDAQ:FORM) with an Overweight rating and a price target of $75.00 on Tuesday. FormFactor currently trades at $49.05 with a market capitalization of $3.8 billion, according to InvestingPro data.
The research firm cited FormFactor’s strong performance since September 1, with the stock up 68% compared to semiconductor index and semiconductor equipment average gains of 18% and 24%, respectively. This growth has been driven by high bandwidth memory (HBM) leverage and improving gross margin trends. InvestingPro data confirms this momentum, showing FormFactor has delivered a 53% return over the past six months and maintains a healthy gross profit margin of 38.2%.
FormFactor’s business is positioned to benefit from new chip design ramps, particularly through its dominant position with Hynix driving HBM leverage, as well as volume production of these designs. Cantor Fitzgerald believes this creates robust growth opportunities into calendar year 2026 and beyond. The company’s strong financial foundation supports this growth trajectory, with InvestingPro highlighting that FormFactor holds more cash than debt on its balance sheet and maintains a current ratio of 4.3, indicating excellent liquidity. InvestingPro offers 10 additional insights about FormFactor that could help investors make more informed decisions.
The firm projects calendar year 2026/2027 earnings per share of $1.55/$2.00, compared to current consensus estimates of $1.53/$1.61, with upside driven by revenue growth and gross margin expansion. In upside scenarios, Cantor Fitzgerald calculates potential earnings per share of approximately $3.00 by calendar year 2027 and $4.00 by calendar year 2030.
Cantor Fitzgerald’s $75 price target represents approximately 50% upside from current levels and is based on applying a 25x price-to-earnings multiple to their calendar year 2027 upside scenario.
In other recent news, FormFactor reported its third-quarter earnings for 2025, surpassing market expectations with an earnings per share of $0.33, compared to the forecasted $0.25. The company’s revenue also exceeded predictions, reaching $202.7 million against a forecast of $199.97 million. Analysts have taken note of FormFactor’s performance, with Northland raising its price target to $44 from $23 while maintaining a Market Perform rating. Northland attributed this adjustment to the company’s earnings beat and raised guidance, as well as improvements in gross margin driven by automation and efficiency enhancements.
Similarly, Stifel increased its price target to $42 from $35, maintaining a Hold rating. Stifel highlighted FormFactor’s strong third-quarter performance and the resurgence of High Bandwidth Memory (HBM) as a key growth driver. These developments reflect the company’s ability to exceed both firm-specific and consensus expectations. The raised guidance for the fourth quarter further underscores FormFactor’s positive trajectory.
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