Ultra Clean Holdings (UCTT – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Charles Shi from Needham maintained a Buy rating on the stock and has a $40.00 price target.
Charles Shi has given his Buy rating due to a combination of factors, despite the recent challenges faced by Ultra Clean Holdings. The company experienced a significant downturn in its China operations, which impacted its quarterly results. This was primarily due to delays in product qualifications with a major Chinese semiconductor customer and a sudden drop in demand within the Chinese semiconductor market.
Despite these setbacks, the company’s performance outside of China remains stable, and management anticipates a 5% growth in the wafer fabrication equipment (WFE) sector for the full year. Although the outperformance compared to WFE might be less pronounced due to the China issues, the sharp decline in China revenue is seen as a clearing event. This has led to a reduction in estimates and a price target adjustment to $40, yet the Buy rating is maintained as the stock is trading at a discount compared to its peers.
According to TipRanks, Shi is a 3-star analyst with an average return of 2.1% and a 37.19% success rate. Shi covers the Technology sector, focusing on stocks such as Cohu, KLA, and Lam Research.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $48.00 price target.