Canaccord downgrades OLED; checks point to client R&D programs

|By:, SA News Editor

Canaccord's Jonathan Dorsheimer has downgraded Universal Display (OLED) to Sell and lowered his PT to $19 from $30. Most importantly, he says checks indicate Samsung Display and LG Display (LPL) have in-house R&D programs to create their own phosphorescent OLED materials. He thinks production could begin after Universal patents expire in 2017.

Dorsheimer is also concerned about OLED TV push-outs.

Samsung recently bought OLED materials provider Novaled. Universal shares dove when the deal was first reported, but recouped some of their losses after analysts argued Novaled's materials are complementary.

OLED -7.6% premarket.