Oppenheimer Downgrades Universal Display Corp

Oppenheimer downgraded Universal Display Corp OLED Friday from Outperform to Perform.

Analysts Andrew Uerkwitz and Martin Yang note that “Universal Display is well positioned long term to be the only supplier of the most important material for OLED displays...With its business model, even in disappointing quarters, it can churn out enviable operating margins.

“However, we believe the troubles Samsung will face in 2015 will create too much noise for OLED stock to work. And, while we think LG will become a customer equal to, if not greater than, Samsung, we expect it will not provide enough lift in 2015. This can be seen in our updated estimates.”

Uerkwitz expected “earnings to pick back up in 2016 when comps improve, LG continues to ramp, and several other customers start contributing materially. In the meantime, we step to the sidelines with a downgrade.”

Universal Display Corp recently traded at $27.50, up 1.10 percent.