LG Commentary Supports Universal Display (OLED) Buy Thesis - Needham & Company

Needham & Company analyst, James Ricchiuti, thinks that the Universal Display (NASDAQ: OLED) business is at an inflection point and is supported by commentary from LG's 4Q conference call. No change to OLED's Buy rating or $62 Price Target.

LG Display (NR) in its Q4 call last evening said it met its OLED-TV panel shipment target of approximately 400,000 units for 2015, 50% of which the company said was sold in Q4. LG expects quarterly shipments in 2016 will exceed 200,000 units and for the full year reiterated its target of 1 million units. LG expects 40% of its total shipments to come from TV units that are over 65 inches.

LG recently stated that it will add additional capacity for OLED-TVs, converting existing LCD capacity to OLED-TV production, with plans to add another 25,000 plates per month that could come on line by the 2H of 2017. In its call last night, LG noted increased confidence in the market outlook for OLED-TVs overall, indicating that demand in the channel is strong and that orders are currently in excess of shipments.

The analyst believes that the OLED market is at an inflection point with multiple growth drivers in mobile displays, large-area TVs, automotive and longer term in lighting. Significant investments are being planned by the two major players in the OLED market, Samsung (NR) and LG Display, which represented approximately 63% and 29% of UDC’s revenues, respectively, through the first nine months of 2015,

For an analyst ratings summary and ratings history on Universal Display click here. For more ratings news on Universal Display click here.

Shares of Universal Display closed at $44.95 yesterday.

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