Needham lowered the firm’s price target on Ultra Clean (UCTT) to $40 from $44 and keeps a Buy rating on the shares. The company reported a surprise miss-and-cut quarter due to a large step down of the direct China business into Q1 despite ex-China business remaining stable, the analyst tells investors in a research note. The firm adds that the management cited the product qualification delays of a top Chinese semicap customer and the sudden weakening of Chinese semicap demand as reasons for the pronounced China weakness, the firm adds.
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