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Universal Display: Strong Financial Position and OLED Demand Drive Buy Rating Despite Conservative Price Objective

Bank of America Securities analyst Simon Woo reiterated a Buy rating on Universal Display (OLEDResearch Report) yesterday and set a price target of $160.00.

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Simon Woo has given his Buy rating due to a combination of factors including Universal Display’s strong financial position and potential for significant upside. Despite reducing the price objective to $160, which reflects a more conservative price-to-earnings ratio, the stock still presents an attractive upside potential of over 35%. This is largely driven by anticipated demand for OLED materials ahead of U.S. tariff implementations, which aligns with robust first-quarter results from Asian technology companies.
Furthermore, while there are concerns about slower growth in the latter half of the year, particularly affecting Asian panel makers and Apple’s supply chain, Universal Display’s high-margin profile and strong intellectual property position are expected to sustain its earnings stability. The company’s solid net-cash position and resilient margins are seen as protective factors against significant share price corrections, supporting the Buy recommendation.

In another report released on April 17, Goldman Sachs also maintained a Buy rating on the stock with a $172.00 price target.

OLED’s price has also changed dramatically for the past six months – from $200.840 to $118.480, which is a -41.01% drop .

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