Analyst Cuts Numbers on Universal Display (PANL); Sees Lower-Than-Expected Rate on Samsung License
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Price: $6.87 -0.15%
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Canaccord Genuity maintains a 'Hold' on Universal Display (NASDAQ: PANL) price target lowered from $40 to $35.
Canaccord analyst, Jonathan Dorsheimer, said, "After triangulating the disclosure in UDC’s filings as well as follow-ups from some recent management commentary, we now believe that the implied rate the Samsung license is based off of is lower than we originally expected. We believe that the rate is closer to 75bps, resulting in a $290-300M licensing opportunity through 2017, down from our earlier assumption of 100bps and a $350-375M licensing opportunity."
"We have lowered our numbers to reflect a lower implied royalty rate for Samsung and rest-of-industry as a consequence. We have also reduced slightly our margin assumption for the host material business...We still believe that OLEDs are one of the few remaining growth industries, the scarcity of which we feel justifies the 15x multiple on an out year’s numbers even with some execution risks and uncertainties with respect to UDC’s specific role within this secular trend."
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 $36.69 yesterday.
Canaccord analyst, Jonathan Dorsheimer, said, "After triangulating the disclosure in UDC’s filings as well as follow-ups from some recent management commentary, we now believe that the implied rate the Samsung license is based off of is lower than we originally expected. We believe that the rate is closer to 75bps, resulting in a $290-300M licensing opportunity through 2017, down from our earlier assumption of 100bps and a $350-375M licensing opportunity."
"We have lowered our numbers to reflect a lower implied royalty rate for Samsung and rest-of-industry as a consequence. We have also reduced slightly our margin assumption for the host material business...We still believe that OLEDs are one of the few remaining growth industries, the scarcity of which we feel justifies the 15x multiple on an out year’s numbers even with some execution risks and uncertainties with respect to UDC’s specific role within this secular trend."
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 $36.69 yesterday.
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