Ultra Clean (UCTT) PT Raised to $66 at Needham & Company

Needham & Company analyst N. Quinn Bolton raised the price target on Ultra Clean (NASDAQ: UCTT) to $66.00 (from $55.00) while maintaining a Buy rating.

The analyst commented, "We are raising our UCTT estimates and PT from $55 to $66 (16x our CY22 NG EPS estimate) to reflect a stronger WFE outlook and the acquisition of Ham-Let, which closed on March 31, 2021. Our new estimates also reflect last week's $175MM primary common stock offering. We now model UCTT's core Semiconductor Products and Solutions (SPS) business excluding Ham-Let growing 21% and 6% in 2021 and 2022, respectively, in-line with the 21% and 5% forecasts in our WFE model. We also modestly raised our Semiconductor Services Business (QuantumClean) estimates to reflect high wafer start utilization rates. For Ham-Let, we forecast steady revenue growth as UCTT drives cross-selling opportunities across its global footprint and highlight the meaningful GM expansion opportunity through vertical integration. Reiterate Buy."

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