FormFactor’s Hold Rating: Balancing Recovery and Future Uncertainties

Needham analyst Charles Shi has maintained their neutral stance on FORM stock, giving a Hold rating yesterday.

Charles Shi has given his Hold rating due to a combination of factors including FormFactor’s recent financial performance and future market uncertainties. The company experienced a notable recovery in the second quarter, exceeding expectations after a weaker performance in the previous quarter. This recovery was driven by strong demand in high-bandwidth memory and an increase in PC and smartphone demand, which positively impacted the stock price.
However, despite this positive momentum, Charles Shi remains cautious about the company’s future prospects. The uncertainty surrounding tariffs poses a risk to the demand environment, leading to a more conservative outlook for the latter half of 2025 and the first half of 2026. This cautious stance on future demand and the potential impact of tariffs contributed to the decision to maintain a Hold rating on FormFactor’s stock.

In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $35.00 price target.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FORM in relation to earlier this year.