Oppenheimer Starts Ultra Clean (UCTT) at Outperform

Oppenheimer analyst Ed Yang initiates coverage on Ultra Clean (NASDAQ: UCTT) with a Outperform rating and a price target of $70.00.

The analyst comments "We initiate coverage on Ultra Clean Technologies (UCT) with an Outperform rating and a $70 target. UCT is: 1) highly leveraged to the semiconductor upcycle and could exceed estimates if wafer fab equipment (WFE) recovers as expected; 2) well positioned in AI growth areas, including nascent, but booming franchises in high- bandwidth memory (HBM), advanced packaging, and vacuum based EUV tools, all with leading Western OEMs; and 3) uniquely hedged against the US/China "Chips War" with a strong local presence supplying rising Chinese equipment makers. Currently, UCT is well on its way to reclaiming its prior peak levels, but remains down 20% in quarterly revenue and gross margin, with operating margin and stock price halved, making it a coiled spring poised for upward movement."

For an analyst ratings summary and ratings history on Ultra Clean click here. For more ratings news on Ultra Clean click here.

Shares of Ultra Clean closed at $34.43 yesterday.

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