Needham Remains a Buy on Ultra Clean Holdings (UCTT)

In a report released today, Quinn Bolton from Needham reiterated a Buy rating on Ultra Clean Holdings (UCTT), with a price target of $15. The company’s shares closed yesterday at $12.61.

Bolton wrote:

“Driven by a first full quarter of revenue from QGT , UCTT reported 4Q18 revenue near the high-end of guidance and NG GM that improved 300bps sequentially. While UCTT’s near-term outlook reflects the cautious WFE spending environment already reported by many of its peers and OEM customers, we believe the recurring revenue stream and dramatic improvement in NG GM brought about by QGT bears out the strategic rationale behind the acquisition. Further, management has implemented a series of rigorous cost structure improvements to increase profitability and shareholder returns during the extended down cycle. Reflecting reduced revenue volatility, the structural improvement in GM and the cost reduction initiatives, we reiterate our Buy rating and raise our 12-month PT to $15, or 10x our CY20 NG EPS estimate (including SBC), from $13.”

According to, Bolton is a top 100 analyst with an average return of 15.2% and a 66.5% success rate. Bolton covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, Sequans Communications S A, and Quantenna Communications.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ultra Clean Holdings with a $15 average price target.

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Ultra Clean Holdings’ market cap is currently $484.2M and has a P/E ratio of 7.95. The company has a Price to Book ratio of 1.11.

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Ultra Clean Holdings, Inc. engages in the development, manufacture, and supply of semiconductor capital equipment. It offers supply chain management, metal fabrication, precision machining, system integration, thermal control, and three-dimensional printing. The company was founded in November 2002 and is headquartered in Hayward, CA.

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