On Thursday, Oppenheimer maintained an Outperform rating on Universal Display (NASDAQ:OLED) Corporation (NASDAQ:OLED) but reduced the price target to $200 from the previous $220.
"Our conviction in OLED to outperform in the next 12 months is higher than before, despite the stock's disappointing performance since 3Q earnings," the firm said.
Analysts at Oppenheimer expressed belief that the current stock price already reflects the short-term challenges faced by the OLED display market.
The firm anticipates that Universal Display's management will set conservative guidance for 2025, which is expected to fall short of the sell-side consensus that suggests a 14% year-over-year sales growth. Oppenheimer has revised its own 2025 estimates to a more modest 5% revenue growth and a 2% decline in earnings per share (EPS).
However, Oppenheimer predicts that the company will outperform in the next 12 months due to an acceleration in the adoption of OLED displays in information technology markets starting late 2025. The new price target of $200 reflects these updated estimates and the anticipation of OLED technology's increased uptake.
In their commentary, Oppenheimer analysts noted that they do not expect significant contributions from blue emitter technology to Universal Display's financials in 2025 and 2026, except for sample sales.
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