Needham & Company Upgrades Ultra Clean (UCTT) to Buy

Needham & Company upgraded Ultra Clean (NASDAQ: UCTT) from Hold to Buy with a price target of $7.00.

Analyst Y. Edwin Mok commented, "We are upgrading UCTT to Buy from Hold. We believe the long-term picture for UCTT is gradually improving as it converts design wins and the 2 acquisitions into incremental revenue, which would allow it to deliver strong earnings growth ahead. In the near term, we expect a strong 1Q16 report as UCTT benefits from the ramp-ups of 3D NAND investments. We see a divergence between stock performance and its fundamentals, as UCTT has underperformed the group so far this year, yet the Street's estimates have been creeping higher. We expect a good 1Q16 report and increased investor confidence in UCTT's growth ahead to drive a higher share. Our new price target of $7.00 is based on a CY17E P/E of 12x."

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 $5.16 yesterday.

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