The future appears bright for investors of Universal Display (OLED) as the company is anticipated to achieve robust earnings in the upcoming years. This optimistic forecast is underpinned by the escalating utilization of organic light-emitting diodes (OLED) in device displays, as stated by analyst James Ricchiuti.
Ricchiuti, an analyst at Needham, has reaffirmed his buy rating on OLED stock and increased the price target to 242 from 198. The stock experienced a 2.3% gain, closing at 213.44 on the stock market on Tuesday, indicating a recent breakout.
Headquartered in Ewing, N.J., Universal Display is a prominent supplier of technology and materials for OLED displays, which is driving the company’s advancement in the market. Since the company posted results for the first quarter that surpassed expectations and revised its outlook in May, it has been on a favorable trajectory.
The growing adoption of OLED displays in the information technology market is proving advantageous for Universal Display. Ricchiuti highlighted that shipments of OLED smartphones surpassed those of legacy LCD smartphones for the first time in the first quarter, with this trend expected to persist as OLED displays gain traction in notebook computers and other IT devices.
Furthermore, Apple recently introduced its inaugural tablets with OLED displays, further contributing to the expansion of this technology. The new iPad Pro, available in 11-inch and 13-inch screen sizes, underscores the increasing utilization of OLED displays in consumer devices.
With OLED stock breaking out from a 24-week consolidation pattern in June, the future looks promising for Universal Display. The company is poised to benefit from a more favorable smartphone refresh cycle, amplified adoption of OLED displays in the IT market, and the scaling of its new blue phosphorescent emitter, according to Ricchiuti.
Beyond smartphones and tablets, OLED displays are also gaining traction in notebook computers, further augmenting the market potential for Universal Display.
As the company continues to ride the wave of OLED display growth, investors are closely monitoring the stock. With positive projections for the future, Universal Display is also featured on the IBD Tech Leaders list, underscoring its robust position in the market.
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As the market for OLED displays continues to expand, Universal Display is well-situated to leverage this burgeoning trend, rendering it an appealing opportunity for investors seeking prospects in the technology sector.