Needham analyst Charles Shi has maintained their bullish stance on UCTT stock, giving a Buy rating on February 25.
Charles Shi has given his Buy rating due to a combination of factors surrounding Ultra Clean Holdings. The recent announcement of CEO Jim Scholhamer’s departure for health reasons has led to Clarence Granger, the company’s founder and Chairman, stepping in as interim CEO. Despite the abrupt leadership change, Shi believes that the transition plan is robust and unlikely to disrupt the company’s operations.
Additionally, the company’s market cap has seen a significant reduction, approximately one-third, primarily due to a temporary setback in its business dealings in China, which account for about 10% of its operations. Shi views this as a temporary issue, presenting a buying opportunity for investors looking to capitalize on the current low stock price. Overall, the strategic leadership transition and the temporary nature of the market cap reduction underpin Shi’s Buy rating for Ultra Clean Holdings.
In another report released on February 25, TD Cowen also maintained a Buy rating on the stock with a $48.00 price target.