Citigroup Adjusts FormFactor Estimates

Citigroup said that its latest industry checks indicate FormFactor Inc.'s FORM continues to make significant operational progress and customer adoption of its new Matrix DRAM product is ahead of what we previously thought. “We are more optimistic on revenue as it looks like FORM's intensive Matrix qualification efforts w/Elpida should start to pay dividends in 1H:11,” Citigroup writes. “On the back of better revenue, we are nudging our 2011 EPS from ($0.60) to ($0.55) (Street ($1.00)) and we now see FORM being at least cash flow breakeven in CQ2:11.” FORM is rated Buy, High Risk (1H), with a $13 target. FormFactor closed Friday at $10.11.