Universal Display (OLED) NDR Indicates Guidance Reductions Are Over - Goldman Sachs

Goldman Sachs analyst, Brian Lee, reiterated his Buy rating on shares of Universal Display (NASDAQ: OLED) after taking management on a non deal roadshow in NYC on 11/20. The key takeaway is that despite the puts and takes, the analyst believes that the weaker data points from Apple's supply chain do not pose further risk to 2018 guidance.

The analyst stated "OLED is likely to see some catch-up from normalizing inventory issues at Samsung and LG that hurt 3Q18 volumes, while its non-AAPL related revenues appear to have tracked well, based on our estimates". He went on to state "OLED also expects that its underlying business — when normalizing for inventory build of last year and accounting-related changes tied to ASC-606 — would be up high-single digits yoy in 2018, and more in-line with their estimate of over $120mn of CFFO generation this year, only slightly below the $133mn from last year, which was aided by the aforementioned inventory pre-buys from Samsung".

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 $86.80 yesterday.

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