BofA Says Universal Display Corp ‘Could be Hit by Customer Woes’
2022.06.30 03:50
BofA Says Universal Display Corp (OLED) ‘Could be Hit by Customer Woes’
By Sam Boughedda
BofA analysts said in a note to clients Wednesday that two OLED supply chain companies, Universal Display Corp (NASDAQ:OLED) and South Korean company LX Semicon (KQ:108320), could be hit by customer woes.
The analysts downgraded Universal Display Corp to Neutral from Buy, lowering the firm’s price target to $135 from $190.
BofA stated the companies “could face higher price cut pressure or new order cancellation due to LCD downturn and muted OLED growth theme (TV, Smartphone).
“We do not expect any meaningful turnaround in TV and PC, which will be a negative catalyst for most display names.” They added that both Universal Display and LX Semicon will likely remain profitable due to “proven patents and fabless competitiveness.”
Shares of Universal Display fell 5.8% Wednesday.
