Goldman Sachs’s light-emitting diode analyst Brian Lee today reiterates a Buy rating on Cree (CREE) and on Universal Display (PANL), writing that both companies may enjoy “volume upside.”
However, Lee’s focus today seems to be mostly on Universal Display, given what he sees as “data points that indicate growing momentum in OLED adoption.”
Lee’s note is not based on any new developments in particular; the report is Goldman’s “Global Clean Energy Monthly,” which means it gathers and reiterates viewpoints of several analysts. In the case of today’s note, Lee and the other analysts are consolidating thoughts they’ve had as they spoke with investors in the clean tech sub-sector.
Specifically, Lee notes December news reports that Panasonic (6752JP), who signed a deal with Universal in August regarding lighting products, is “ramping capacity at an OLED TV panel manufacturing facility.” He thinks it’s possible Universal could get in on the TV part, writing, “the capacity ramp appears a full year ahead of expectations and the existing commercial licensing agreement in lighting serves as a precedent for a potential future collaboration on OLED displays, in our view.”
Lee is also encouraged by a second lighting agreement with a company called Lumiotec, signed this month, that brings licensing fees and royalties through December of 2015.
Lee has a Buy $68 price target on PANL shares.
PANL this afternoon is down 16 cents, or 0.4%, at $40.51.
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