UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on FormFactor on Muted Outlook

In a report published Thursday, Citigroup analyst Terence Whalen reiterated a Neutral rating on

, and raised the price target from $5.25 to $8.00. In the report, Citigroup noted, “FORM has performed strongly YTD as a key beneficiary of strong mobile DRAM demand. Several separate scenarios could help FORM move above $8: 1) FORM could win Samsung DRAM opportunity (where it currently has no share), 2) FORM could win high-speed test opportunities with MU/Elpida or SK-Hynix, or 3) FORM could penetrate foundry test lines as copper pillar chips displace traditional ball grid arrays that currently use alternative cantilever probes. We reiterate our Neutral view and expect the stock to trade inline with the market (memory spot moderation + seasonally slower Dec-Mar test period) but will monitor progress on the above three factors as criteria to consider potentially becoming more constructive on the stock.” FormFactor closed on Wednesday at $7.27.