Deutsche Bank Starts FormFactor (FORM) at Buy

Deutsche Bank analyst George Brown initiates coverage on FormFactor (NASDAQ: FORM) with a Buy rating and a price target of $200.00.

The analyst comments: “After delays, we believe FormFactor has now cemented itself as the second source of probe cards for Nvidia's GPUs at TSMC, opening up a TAM which is equal (in dollar value) to FormFactor's total logic probe card sales in 2026E ($0.5bn). We expect first sales in H2-26, with a path towards ~20% share by 2028E, equivalent to sales of >$0.2bn. In high bandwidth memory, where FormFactor is dominant today, we expect the TAM to >2x by 2028E, led by a shift to vertical MEMS (vMEMS) probe tech (from micro-cantilever) in custom HBM. Despite giving up ~40% of share to Technoprobe, we expect FormFactor's HBM sales can still reach $0.4bn in 2028E. In custom ASICs, we expect a similar shift to vMEMS (from 'pseudo MEMS') as test complexity inflects, modelling $0.2bn in sales (15-20% share) by 2028E (~10x vs 2025). Lastly in photonics, despite early wins, mid-term success depends on FormFactor's ability to commercialize optoelectronic probe cards (where it is the laggard today), but where we are hopeful following recent acquisitions.”

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 $136.25 yesterday.

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