UPDATE: Oppenheimer Upgrades Universal Display on Near-Term Strong Smartphone Shipments

In a report published late Thursday, Oppenheimer analyst Andrew Uerkwitz upgraded Universal Display

from Perform to Outperform and named a $37.00 price target. In the report, Oppenheimer wrote, "Near term, we believe strong smartphone shipments will help small OLED display area grow at a CAGR of 42% from 2012 to 2015. Longer term, adoption of OLED TV should help total shipment area grow at a CAGR of 70% in the same period. We note our OLED TV assumption is lower than DisplaySearch's forecast. Despite our lower TV growth trajectory, we believe leverage in the operating model and the lack of real competition in POLED material will help PANL achieve substantial earnings growth through 2015." Shares of Universal Display closed on Thurday at $31.21.