Craig-Hallum bullish on ‘mispriced’ Photronics, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Photronics (PLAB) with a Buy rating and $32 price target The firm says Photronics is one of the most significantly mispriced small-cap stocks it can remember coming across. Photronics has recently gone through a multi-year digestion period similar to others in the industry for legacy node applications, such as automotive and industrial end markets. In line with industry commentary for a bottoming in these markets, Craig-Hallum believes this digestion period for Photronics is near completion and the environment should gradually improve from here. In addition, the firm thinks the company’s Flat Panel Display business should see tailwinds from the move to GEN 8.6 AMOLED display technologies which drive a clearer picture, better colors, a lighter device, and make bendable glass easier.