Universal Display (OLED) Stock: $245 Price Target From Needham

By Amit Chowdhry ● Nov 13, 2021
  • The shares of Universal Display Corporation (NASDAQ: OLED) have received a price target of $245 from Needham. These are the details.

The shares of Universal Display Corporation (NASDAQ: OLED) have received a price target of $245 from Needham. And Needham analyst James Ricchiuti reduced the price target from $275 while maintaining a “Buy” rating on the shares.

Ricchiuti cited the company’s lower-than-expected third-quarter results, but continues believing that the next two to three years will be strong as it benefits from the OLED capacity build-out in China. And Ricchiuti also pointed out that the ongoing growth of the mobile and OLED-TV markets will also be beneficial for the company.

The company reported its Q3 2021 results earlier this month. These are the highlights:

— Total revenue in the third quarter of 2021 was $143.6 million as compared to $117.1 million in the third quarter of 2020. The increase in revenue was due to higher royalty and license fees, as well as higher material sales primarily due to stronger demand in the OLED display market.

— Revenue from material sales was $75.6 million in the third quarter of 2021 as compared to $68.7 million in the third quarter of 2020.

— Revenue from royalty and license fees was $63.9 million in the third quarter of 2021 as compared to $44.6 million in the third quarter of 2020.

— Cost of material sales was $28.9 million in the third quarter of 2021 as compared to $20.8 million in the third quarter of 2020. Included in the cost of material sales was an inventory reserve charge of $1.0 million in the third quarter of 2021 as compared to a charge of $198,000 in the third quarter of 2020.

— Operating income was $57.7 million in the third quarter of 2021 as compared to operating income of $48.4 million in the third quarter of 2020.

— Net income was $46.1 million or $0.97 per diluted share in the third quarter of 2021 as compared to $40.5 million or $0.85 per diluted share in the third quarter of 2020.

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