UPDATE: Piper Jaffray Reiterates Underweight Rating, Lowers PT on Universal Display
In a report published Friday, Piper Jaffray & Co. reiterated its Underweight rating on Universal Display Corporation (NASDAQ: PANL), but lowered its price target from $30.00 to $28.00.
Piper Jaffray noted, “Post our trip to Asia where we met several OLED companies, it appears that UDC will be the likely supplier of green host and emitter material at Samsung, replacing the incumbent fluorescent supplier. We expect uptake of this to begin in 1Q13 post additional qualification. As we revise our OLED unit estimates for smartphones and televisions, we see overall materials revenues declining both in CY12 and CY13 as customers move towards declining dopant concentration to sub 5% (previously 5% to 10%). Further, we don't expect any agreements from LG, AUO and Chimei near term as these companies do not have meaningful presence in the mobile market while TV volumes remain extremely low. Finally, with OLED adoption by Apple unlikely for the next 12 months, we see a lack of broad based OLED adoption.”
Universal Display Corporation closed on Thursday at $37.69.
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