Please ensure Javascript is enabled for purposes of website accessibility

Why Universal Display Corp. Stock Popped Today

By Steve Symington - May 23, 2016 at 1:13PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares oft the OLED specialist jumped after a notable analyst upgrade.

 

Image source: Universal Display Corp.

What: Shares of Universal Display Corp. (OLED -1.39%) jumped as much as 10.7% early Monday after receiving an upgrade from Goldman Sachs analyst Brian Lee.
 
So what: Specifically, Lee upgraded Universal Display stock this morning to "buy" from "hold," and simultaneously increased his 12-month per-share price target to $76 from $55 -- a roughly 35% premium to Friday's closing price.
 
To justify his more bullish stance, Lee noted that OLED stands to benefit not only from Apple's (AAPL -1.21%) first-time adoption of OLED displays in its iPhone line up starting next year, but also from a "secular shift across the handset market with roughly 10% penetration today but a potential 'LED 2.0' hockey-stick adoption across multiple product cycles and categories in coming years."

Now what: I've already written at length on the seeming inevitability of Apple's impending shift to OLED, most recently including reports it struck a deal with leading OLED display producer -- and Universal Display's single largest customer -- Samsung Display, under which the South Korean company will supply 100 million 5.5-inch OLED smartphone displays annually to the folks in Cupertino.

Despite technically falling short of Wall Street's revenue expectations with its first-quarter 2016 results earlier this month, Universal Display management highlighted a tremendous amount of activity and financial resources being poured into the OLED industry in these early stages of growth, as an increasing number of manufacturers reveal plans to develop and bolster manufacturing for OLED smartphones, tablets, lighting solutions, and televisions over the next several years.

So even with shares of Universal Display stock trading near all-time highs as of this writing, I remain convinced it has plenty of room to run higher as its flagship OLED technology becomes more ubiquitous by the day.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$137.55 (-1.21%) $-1.68
Universal Display Corporation Stock Quote
Universal Display Corporation
OLED
$102.34 (-1.39%) $-1.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
317%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.