Summit Research Raises Price Target On FormFactor

In a note out Tuesday morning, Summit Research is raising the price target on FormFactor, Inc. FORM from $10 to $11, while maintaining a Buy rating.

In the note, analyst Srini Sundararajan states:

"Raising P.T. to $11: Given back-to-back good performance quarter after quarter in 2014, we feel more confident in increasing FORM price target to $11 from $10. FORM has an incremental $65M-$75M revenue opportunity from 2013 to 2016 and what is required for those revenues has already been put in/ paid for. That opportunity falls through to operating income at 60%. Our estimates go to $0.55 for 2015 from a prior value of $0.70 as we now model with a better understanding of the seasonality. However, we now fix the multiple for FORM at 15X given DRAM price stability and add back $2.8 in cash to arrive at a price target of $11 from a prior $10."

Shares of FormFactor closed Friday at $7.84, implying 40.34 percent upside on the stock.