Needham & Company Downgrades Universal Display (OLED) to Hold as 2nd-Half Outlook Cut

August 5, 2016 7:25 AM EDT
Get Alerts OLED Hot Sheet
Price: $59.05 +3.60%

Rating Summary:
    7 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
Trade OLED Now!
Join SI Premium – FREE

Find out which companies are about to raise their dividend well before the news hits the Street with's Dividend Insider Elite. Sign-up for a FREE trial here.

Needham & Company downgraded Universal Display (NASDAQ: OLED) from Buy to Hold and 2nd-half revenue cut.

Analyst James Ricchiuti commented, "We are reducing our rating on UDC to Hold from Buy after Q2 results came in modestly below expectations and mgmt reduced the 2H rev outlook. With the stock having closed yesterday above our target price, we're unable to support the Buy with the latest estimate cut. We believe UDC is uniquely positioned to benefit from the new OLED manufacturing capacity that will begin coming on line later next year; however, the existing capacity is not producing the growth we had anticipated for UDC. Mgmt reduced its 2016 revenue guidance by 5-10%, citing expectations of a less favorable mix of emitter revenue, lower than expected royalty revenues and higher manufacturing efficiencies by its customers, which impacts materials consumption. While we believe these are temporary issues, we now believe these headwinds could carry well into 2017."

The firm is lowering lowering 2016 EPS estimate to $0.90 from $1.05 on revenues of $197.7M from $220.8M. They lower 2017 EPS estimate to $1.35 from $1.65 on revenues of $265M (up 34%).

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 $70.25 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Downgrades, Hot Downgrades

Related Entities

Needham & Company

Add Your Comment