Wedbush Downgrades Universal Display (PANL) to Neutral, Sees Major Disruption in Customer Demand
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Price: $28.68 -0.73%
Rating Summary:
9 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
9 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Wedbush downgraded Universal Display (NASDAQ: PANL) from Outperform to Neutral and slashes its price target from $56 to $20 following Q3 results after the close, which they called "significantly disappointing."
The firm comments, "We are downgrading shares of Universal Display to NEUTRAL from OUTPERFORM on indications of a major disruption in customer demand, where both visibility and confidence will remain low. We expect that following the significant 3Q12 miss, investors will have a considerable amount of skepticism around UDC's revenue forecasts until a more credible record is established. Disclosure on the 3Q12 call that Samsung’s minimum purchase requirements can be rolled from one year to the next significantly reduces our confidence in any near-term growth visibility. While UDC could see a substantial benefit from growth at Samsung, and adoption in their M4 stack, we will wait for credible confirmation."
On Q3 results, the firm notes:
"3Q12 results were a significant disappointment. UDC reported 3Q12 rev/EPS of $12.5m/($0.12) vs. our $18.4m/$0.07 estimate and consensus of $18.9m/$0.05. Gross margins were 91.3% vs. our estimate of 96.0% and the consensus 91.0%, up modestly from the year ago 89%. Chemicals sales were $11.0m, down (14%) Q/Q and included $1.9m host and $9.1m emitter revenue."
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 $28.18 yesterday, with a 52 week range of $25.45-$55.25.
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The firm comments, "We are downgrading shares of Universal Display to NEUTRAL from OUTPERFORM on indications of a major disruption in customer demand, where both visibility and confidence will remain low. We expect that following the significant 3Q12 miss, investors will have a considerable amount of skepticism around UDC's revenue forecasts until a more credible record is established. Disclosure on the 3Q12 call that Samsung’s minimum purchase requirements can be rolled from one year to the next significantly reduces our confidence in any near-term growth visibility. While UDC could see a substantial benefit from growth at Samsung, and adoption in their M4 stack, we will wait for credible confirmation."
On Q3 results, the firm notes:
"3Q12 results were a significant disappointment. UDC reported 3Q12 rev/EPS of $12.5m/($0.12) vs. our $18.4m/$0.07 estimate and consensus of $18.9m/$0.05. Gross margins were 91.3% vs. our estimate of 96.0% and the consensus 91.0%, up modestly from the year ago 89%. Chemicals sales were $11.0m, down (14%) Q/Q and included $1.9m host and $9.1m emitter revenue."
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 $28.18 yesterday, with a 52 week range of $25.45-$55.25.
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