Goldman Sachs Pounds the Table on Universal Display (PANL), Says Sell-Off Based on Misperceptions

Goldman Sachs reiterated their Buy and $68 price target on Universal Display (NASDAQ: PANL) Thursday in light of the 20% sell-off in the stock over the past two weeks.

The firm said the sell-off is based on "misperceptions" and is "overdone." The selling provides a very attractive entry point for the shares, as they do not believe fundamentals have changed.

One of the misperceptions is that guidance is at risk. Goldman said Universal has set a low bar on guidance for both 4Q and 2012 and they see financial targets moving higher, not lower.

Another is Corning's (NYSE: GLW) miss is negative for OLED TV demand. Goldman notes that there are virtually no OLED TV sales today and demand expectations are low to begin with. "Corning is currently not a read-across for OLED TVs", they said.

The firm sees three catalysts to watch for in the 1st half of 2012: 1) OLED TV data points at CES 2012 in Jan; 2) Additional royalty/licensing agreements, with a possible long-term LG deal; 3) Beat-and-raise

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 $38.96 yesterday.

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