Needham & Company Downgrades Ultra Clean (UCTT) to Hold
Get Alerts UCTT Hot Sheet
Rating Summary:
7 Buy, 2 Hold, 0 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
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Needham & Company downgraded Ultra Clean (NASDAQ: UCTT) from Buy to Hold.
Analyst Y. Edwin Mok commented, "We are downgrading UCTT to Hold from Buy based on our expectation for a weaker 2Q15 in the SemiCap space and the lack of growth driver for the year. With 82% of revenue coming from the SemiCap industry, UCTT has the highest exposure to the sector among subsystem peers. We expect some DRAM pushouts to impact UCTT's 2Q15 sales, and we do not see any near-term catalyst to offset that weakness. With UCTT increasing focus on the SemiCap space, we believe it will be able to win new business in its core market longer term, but these efforts typically take time and the reduced effort in non-semi could result in lower non-semi sales ahead. After reducing our estimates on the near-term sector softness, UCTT is trading at a CY2016E P/E of 13x, which seems fairly valued in our view."
For an analyst ratings summary and ratings history on Ultra Clean click here. For more ratings news on Ultra Clean click here.
Shares of Ultra Clean closed at $8.48 yesterday.
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