Universal Display, the Technology sector company, was revisited by a Wall Street analyst on August 1. Analyst Atif Malik from Citi maintained a Hold rating on the stock and has a $162.00 price target.
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Atif Malik has given his Hold rating due to a combination of factors surrounding Universal Display’s current market position and future prospects. The company reported better-than-expected results for the June quarter and adjusted its guidance upwards slightly. However, the overall outlook for the year remains largely unchanged, with some intra-quarter tariff-related impacts that are not expected to significantly affect the third quarter.
While there is progress in the development of blue OLED materials with multiple customers, the timing of commercial adoption is still uncertain and heavily reliant on market conditions. The potential growth in OLED materials for foldable phones presents an opportunity, but it is contingent on the market gaining more traction. Additionally, the company’s gross margin target remains stable, but there are expectations of a slightly lower margin in the second half of the year. Given these mixed signals and the unchanged target price of $162, Malik’s Hold rating reflects a cautious stance on the stock’s near-term potential.
According to TipRanks, Malik is a top 25 analyst with an average return of 30.6% and a 71.71% success rate. Malik covers the Technology sector, focusing on stocks such as Nvidia, Apple, and Arista Networks.
In another report released on August 1, TR | OpenAI – 4o also downgraded the stock to a Hold with a $158.00 price target.