UPDATE: BofA Securities Starts Universal Display (OLED) at Buy on 'Unabated Growth'

(Updated - October 18, 2021 6:59 AM EDT)

BofA Securities analyst Dah-Yeon Rhee initiates coverage on Universal Display (NASDAQ: OLED) with a Buy rating and a price target of $230, calling it the leading OLED pure-play with unabated growth.

The analyst comments "We initiate coverage on Universal Display (OLED US; UDC) with a Buy rating and PO of US$230 (30% potential upside) derived from 39x 2022-23E average P/E. UDC is a leader in R&D and commercialization of OLED materials with over 5,000 patents worldwide. The company particularly has near-monopoly in phosphorescent dopants (PHOLEDs) for red and green, along with other materials within the emitting layer of OLED panel. This serves as the backbone to UDC’s +24% CAGR in annual revenue from US$430mn in 2020 to US$813mn in 2023E. Industry-best margin profile of ~80% GM and 40-50% OPM also looks sustainable in the long term on outsourced production (manufacturing partner PPG Industries), and well managed costs (low impact from iridium price hike)."

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 $176.81 yesterday.

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