Universal Display, a key player in organic light-emitting diodes for device displays, has several positive catalysts ahead, a Wall Street analyst says. OLED stock has been rising ahead of the news.
The Ewing, N.J.-based company will benefit from a replacement cycle for Apple iPhones and Google Android smartphones, Oppenheimer analyst Martin Yang said in a client note Wednesday. The upgrade cycle will start later this year thanks to upcoming smartphones with artificial intelligence capabilities, he said.
Universal Display is "uniquely positioned to benefit" because of the use of OLED displays in premium handsets. And there are several smartphone announcements planned in the coming months, he said.
Universal Display supplies both technology and emitter materials for OLED displays.
Yang reiterated his outperform rating on OLED stock and raised his price target to 250 from 200.
OLED Stock Is A Recent Breakout
OLED stock rose 0.2% to close at 218.32 on the stock market today.
On Tuesday, Needham analyst James Ricchiuti upped his price target on Universal Display stock to 242 from 198 and maintained his buy rating.
On June 11, OLED stock broke out of a 24-week consolidation pattern at a buy point of 194.84, according to IBD MarketSurge charts.
Next Wednesday, Samsung is holding a product launch event in Paris. News leaks point to new Galaxy smartphones, including folding screen models.
On Aug. 13, Alphabet unit Google is holding an event in Mountain View, Calif., where it is likely to show off its latest Pixel smartphones and other devices.
In September, Apple will hold an event to reveal its iPhone 16 smartphones. The iPhone 16 Pro and Pro Max handsets reportedly have larger OLED screens than the current models. That is positive news for Universal Display.
"We estimate that stronger demand and new display sizes for Pro/Pro Max will result in a 15% gain in total OLED display area for the iPhone 16 family over the iPhone 15 family in calendar 2024," Yang said.
OLED stock is on the IBD Tech Leaders list.
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