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Citigroup Starts FormFactor at Buy

From Standard & Poor's Equity Research

Citigroup started covering FormFactor (FORM) at buy, noting factors such as the company's growth prospects.

Analyst Tim Arcuri says the company is the best pure-play on strong DRAM demand in Calendar Year 2007. He says the company is the world's #1 provider of advanced probe cards, which enable chipmakers to test chips more efficiently. He says the business model is driven by new chip design, with chip demand more so than chip manufacturing supply, thus it's well insulated from his cyclical supply concerns on the capex cycle.

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