Zacks Investment Research downgraded shares of Formfactor Inc (FORM) from OUTPERFORM to NEUTRAL on January 10, 2014, with a target price of $6.75.
FormFactor is an OEM of wafer probe cards used in the back end of the semiconductor manufacturing process. The company posted a broader-than-expected third quarter loss. We believe that FormFactor's decision to shift focus away from the PC DRAM market toward mobile segment is likely to be beneficial. However, management provided a weak revenue guidance for the upcoming quarter due to slowing probe card demand. We believe the weakening demand for probe cards might prevent the company from absorbing all of its manufacturing costs, impacting margins. We are therefore downgrading FormFactor shares from Outperform to Neutral.
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