Goldman Sachs Neutral On FormFactor (FORM)

Goldman Sachs is maintaining its Neutral rating on FormFactor, Inc. FORM after it reported earnings yesterday. It has a $6 price target on shares. In a note to clients, Goldman writes, "We maintain our Neutral rating and continue to prefer other names in the SPE sector with better relative profitability and cash flow generation. While we are encouraged by the management change and expect margins to improve over the coming quarters, Form is the only company in our SPE coverage universe to generate losses at this stage of the cycle. With nearly 80% of the market cap in cash even taking into account 2011 losses, we believe the stock has some valuation support. However, we would rather add to positions in names with significant earnings/cash flow generation over the course of a cycle." Shares of MCK lost 55 cents yesterday to close at $8.37, a loss of over 6%.