Universal Display (OLED) PT Lowered to $125 at Needham & Company

Needham & Company analyst James Ricchiuti lowered the price target on Universal Display (NASDAQ: OLED) to $125.00 (from $145.00) while maintaining a Buy rating.

The analyst commented, "OLED shares are expected to be down sharply today after UDC cut its 2H rev guidance by $50M, or more than 25% at the midpoint of the range. Mgmt cited a weaker recovery in materials revenue. Rev for Q3 came in 15% below consensus, and the implied Q4 rev guidance is down 6%-19% sequentially. UDC said the decline was mainly due to weakness in the smartphone market, though revs from LG, UDC’s OLED-TV customer, were down q/o/q by $9M. Add to that the complications of ASC 606, which can magnify changes in the impact of license rev by customer, particularly a customer the size of Samsung, and there unfortunately is a perfect storm. With the expected selloff today, we believe the risk-reward on OLED shares will look particularly attractive given growth expectations for next year. Maintain Buy."

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