Why I Am Upgrading FormFactor To A Strong Buy

I am upgrading FormFactor to Strong Buy with a $134 price target, representing 27% upside potential. Growth should be driven by rising HBM test complexity, stronger demand for GPU and networking probe cards, co-packaged optics adoption, and operating leverage from the Farmers Branch manufacturing ramp. I arrive at my price target by applying a 40x FWD non-GAAP P/E multiple to my 2028 non-GAAP EPS estimate of $3.34. The main risks are an HBM or AI infrastructure slowdown, delays at Farmers Branch, and slower CPO adoption.

I am upgrading FormFactor (FORM) from a Buy to a Strong Buy with a price target of $134. This represents an upside potential of 27% from the current price $105 per share.

My background is in Financial Engineering and I have long since been interested in analyzing strong solid companies with a rare financial Profile. My primary area of specialization is in quantamental analysis, where I use a combination of data driven models and fundamental research. My approach is centered on a structured process that combines top-down screening with bottom-up company specific analysis.I write on to share ideas with a wider audience and also learn more about companies and other analysts. My goal is to make unique ideas & research accessible to retail and professional investors alike, while maintaining analytical depth and a clear investment thesis.