Deutsche Bank Starts Universal Display (PANL) at Buy, $45 Price Target
Today's Overall Ratings: Up: 13 | Down: 7 | New: 38 Deutsche Bank initiates coverage on Universal Display (NASDAQ: PANL) with a Buy. PT $45.00.
The firm comments, "PANL's business model of licensing technology and sole source of phosphorescent emitters (red, green) provides a unique competitive advantage. Moreover, we believe the shares are undervalued and see good price catalysts including signing up more customers for long-term agreements (namely LG), continued penetration of OLED displays into devices (handsets, tablets, tvs), the discovery/commercial production of blue phosphorescent emitters and long term penetration in the OLED lighting industry."
OLED material manufacturers will benefit the most as large players such as Samsung and LG continue to invest in OLEDs, the firm said. Also, the materials layer represents only a small portion of total OLED display costs and so the risk of pricing pressure in the near term is low, they said.