Universal Display Corporation (NASDAQ:OLED) is engaged in the research, development & commercialization of organic light emitting diode or OLED, technologies & materials for use in displays for wearables, smartphones, tablets & televisions & solid-state lighting applications.
Shares surged 8% on Monday after Goldman Sachs (NYSE:GS) analysts upgraded the company’s rating from Neutral to Buy. The reason for the upgrade is the potential for increase in sales of OLED to Apple Inc. (NASDAQ:AAPL)
Goldman's Brian Lee explained, "Given recent field work, we are increasingly confident on Apple’s OLED adoption potential and add this to our modeled estimates for 2017-2018… Specifically, Apple and Samsung analysts Simona Jankowski and Marcus Shin, expect roughly 33mn/113mn total iPhone shipments to use OLED displays, and this is a primary driver of our 4%/25% increase in F17/F18 EPS to $1.93/$2.70 for OLED."
The latest quarter earnings report slightly disappointed investors, as Universal Display’s revenue was $29.7 million, less than the $31.56 million that was expected. Yet, it is very probable that Universal Display will be the primary of OLED display screens for Apple Inc’s upcoming iPhone 7.