Shares of Universal Display Corp. are up 4.4% in Tuesday trading after Gabelli analyst Hendi Susanto upgraded the stock to buy from hold. His upgrade comes after the stock plunged 12% in Monday’s session, following a report saying Apple Inc. was making its own MicroLED display screens. Susanto wrote in his upgrade note that he thought Apple’s work with MicroLED screens was still in the research and development stage, and he noted that Apple bought a MicroLED startup in 2014, meaning that the company’s interest in the technology isn’t particularly new. “The commercialization is at least a couple of years away,” Susanto wrote of Apple’s MicroLED efforts. Meanwhile, he sees “more upside potential than downside risks” for Universal Display, which makes OLED screens. Susanto pointed to a “multiyear investment in OLED display capacity” from many global players as well as management’s own forecast for a sharp increase in the number of installed OLED screens through 2019. Universal Display stock is up 33% over the past 12 months, while the S&P 500 is up 14%.
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