Galluccio likes FormFactor (FORM), which enjoys a 50% share of the global market for wafer-probe cards used for testing semiconductor wafers, and Zoran (ZRAN), which makes integrated circuits for consumer electronics. The money manager believes that FormFactor, expected to lose $1.36 a share in 2008, should pop back as design activity in the semiconductor memory industry revives. The stock, which recently traded at 12.83, is way down from a 52-week high of 40. The company has $11.50 in net cash per share, and the potential to earn $2 a share in the next recovery cycle.

FormFactor (FORM) was upgraded from Underweight to Neutral, JP Morgan said. Stock has lost its premium multiple, though industry price competition remains high.

FormFactor (FORM) was upgraded from Hold to Buy, Citigroup said. $44 price target. Downside appears limited, as the stock has pulled back to an attractive level ahead of what should be a strong 2008.

down 18% Oct 25
Shares of FormFactor (FORM) took a beating Thursday, after the company revealed that it was reviewing its inventory valuation practices and warned of possible financial restatements. The Livermore, Calif., company reported only partial results for its third quarter due to the accounting review, posting 29% year-over-year growth in its top line of $125.3 million.

The stock hit a 52-week low.

FBR said it is downgrading FormFactor (FORM) to an Underperform rating following disappointing Q3 results and guidance. Target price is now $35.

Formfactor - The future is in whatever Intel leaves to do.

wall sreet recommendation

Target: $62.00

Goldman sees an in-line Q2 with solid Q3 guidance. The firm contends the Street largely expected a Q2 miss.

Downgraded by JP Morgan from Neutral to Underweight