Universal Display: Good Returns, But Not As Good As The S&P500 - Updating For 2025E

Summary

• Universal Display Corporation remains a fundamentally attractive investment, with a market-leading position in OLED technology and strong partnerships with LG and Samsung.
• Despite a recent decline in valuation and lowered revenue forecasts, OLED's long-term growth prospects remain solid, driven by increasing adoption and cost efficiencies.
• The company's current valuation offers a potential upside of 18-22% annualized, making it a compelling "Buy" at around $168/share.
• OLED meets key investment criteria: it's qualitative, fundamentally safe, pays a well-covered dividend, and has realistic growth potential, justifying a "Buy" rating.