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Investing.com - Goldman Sachs has reiterated its Conviction Buy rating on Universal Display (NASDAQ:OLED) with a price target of $183.00 ahead of the company’s second-quarter earnings report. According to InvestingPro data, analyst targets range from $160 to $213, with the company maintaining a strong financial health score of "GOOD."
The company is scheduled to release its Q2 2025 financial results on July 31, after market close, according to Goldman Sachs analyst Brian Lee.
Goldman Sachs expects Universal Display to exceed market expectations in the near term, driven by strong demand from China during the quarter.
Despite this positive outlook, the investment bank noted that smartphone unit trends have been slightly weaker than anticipated in the early part of the year, which may impact future performance.
Given these mixed signals, Goldman Sachs anticipates Universal Display will maintain its existing guidance for 2025, as the company prepares for second-half seasonality and ongoing macroeconomic and trade uncertainties.
In other recent news, Universal Display Corporation reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $1.35, compared to the forecasted $1.15. The company also exceeded revenue projections, reporting $166 million against the anticipated $160.73 million. This performance reflects strong operational efficiency, with net income increasing by 13% to $64 million. Universal Display continues to focus on innovation, particularly in blue OLED technology, which positions it well in the competitive market. Additionally, Goldman Sachs maintained its Conviction Buy rating for Universal Display, keeping the price target at $183.00. The firm emphasized the potential growth catalyst tied to the commercialization of blue materials, which could significantly boost revenue per device. Analysts from Goldman Sachs estimate a potential 95% increase in EPS if full penetration of blue materials is achieved over time. These developments underscore the company’s strategic focus on advancing OLED technology and enhancing its market position.
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