In a research report released Friday, Canaccord analyst Jonathan Dorsheimer reiterated a Hold rating on shares of Universal Display Corporation (NASDAQ:OLED), while reducing the price target to $46 (from $52), after the company reported light fourth-quarter results and issued soft 2016 guidance. Universal Display’s shares reacted negatively to the quarterly results, falling about 14% as of this writing.
Dorsheimer observed, “Weak sales and guidance may be indicative of pricing pressure with volume discounts and a move towards lower priced materials. The EPO has revoked patent claims to one of the company’s white phosphorescent technologies, which could indemnified sales of phosphorescent dopants by competitors to Samsung.” However, “’16 remains a transition year and this reset lowers the bar. Focus remains on extension of Samsung agreement and JDC agreement two initiatives that support the Apple move.”
The analyst concluded, “While we would like to see some stabilization in the shares, we lean towards the bullish case below based on our recent Asia trip. 2016 remains a year of transition the key for this stock remains in the years beyond ’18. We maintain our HOLD rating while the dust settles and we can evaluate the likelihood and proximity of new agreements; we lower our price target to $46 on our revised estimates.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Dorsheimer has a yearly average return of -5.2% and a 41.5% success rate. Dorsheimer has a -1.2% average return when recommending OLED, and is ranked #3332 out of 3675 analysts.