Oppenheimer Steps To The Sidelines On Universal Display

In a research report issued today, Oppenheimer analyst Andrew Uerkwitz downgraded shares of Universal Display (NASDAQ:OLED) to Perform rating. No price target was provided.

Uerkwitz observed, “Universal Display is well positioned long term to be the only supplier of the most important material for OLED displays, in our view. With its business model, even in disappointing quarters, it can churn out enviable operating margins. However, we believe the troubles Samsung will face in 2015 will create too much noise for OLED stock to work. And, while we think LG will become a customer equal to, if not greater than, Samsung, we expect it will not provide enough lift in 2015. This can be seen in our updated estimates. We expect earnings to pick back up in 2016 when comps improve, LG continues to ramp, and several other customers start contributing materially. In the meantime, we step to the sidelines with a downgrade.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a total average return of 6.0% and a 61.5% success rate. Uerkwitz has a -4.4% average return when recommending OLED, and is ranked #1004 out of 3372 analysts.

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