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On Thursday, Goldman Sachs made a revision to the price target for Universal Display stock, listed on (NASDAQ:OLED), reducing it from $196.00 to $172.00. Despite this adjustment, the firm maintained a Buy rating on the company’s shares. Currently trading at $113.98, the stock has seen a significant decline of 44% over the past six months. The adjustment comes ahead of the company’s first-quarter earnings report, which is scheduled for May 1, 2025, after the market close.
Goldman Sachs anticipates that Universal Display will deliver relatively solid results for the near term, potentially benefiting from some advance demand due to uncertainties surrounding tariffs. However, the firm also signaled caution regarding the second half of the year, suggesting that visibility could be less clear. The revised estimates take into account a potentially weaker environment for crucial end markets such as smartphones. According to InvestingPro data, 5 analysts have recently revised their earnings downwards for the upcoming period. Consequently, Goldman Sachs’ projections for the second half of 2025 are positioned below the consensus.Want deeper insights? InvestingPro offers comprehensive analysis with 8 additional exclusive ProTips and detailed financial metrics for Universal Display.
The analyst from Goldman Sachs, Brian Lee, highlighted that while the near-term estimates suggest there could be an upside relative to the consensus, the outlook for the latter part of the year is less certain. This tempered view reflects broader concerns about market conditions that may affect Universal Display’s performance.
Universal Display specializes in the research, development, and commercialization of organic light-emitting diode (OLED) technologies and materials. With an impressive gross margin of 75.42% and revenue growth of 12.36% over the last twelve months, the company maintains a strong market position. OLED technology is used in various consumer electronics, including smartphones, televisions, and other displays, making the company’s performance closely tied to the health of these markets.
The upcoming earnings report on May 1 will provide investors with a clearer picture of Universal Display’s financial health and its ability to navigate the current market challenges. The company currently maintains strong fundamentals with a healthy current ratio of 7.18, and InvestingPro’s Fair Value analysis suggests the stock is currently undervalued. Shareholders and potential investors will be closely watching the company’s performance as it contends with the dynamic electronics landscape.
In other recent news, Universal Display Corporation reported its fourth-quarter 2024 earnings, revealing a mixed financial performance. The company achieved revenue of $162.29 million, surpassing analyst expectations of $151.17 million, but its earnings per share (EPS) of $0.96 fell short of the anticipated $1.08. For the full year, Universal Display recorded revenues of $648 million, marking a 12% increase from the previous year. Despite the revenue growth, analysts at Needham have adjusted their price target for the company, reducing it from $215 to $170, while maintaining a Buy rating. This adjustment follows the company’s forecast for 2025, which suggests a potential revenue decline of 1% or a modest increase up to 8%, below the consensus growth expectation of 10.5%. The company continues to focus on the development of its blue phosphorescent material, with commercialization expected in the coming months, a factor that analysts believe could drive future stock performance. Universal Display’s management remains optimistic about the company’s prospects, emphasizing advancements in their OLED technology and the anticipated increase in OLED installed capacity by the end of 2025.
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