TD Cowen analyst Krish Sankar maintained a Buy rating on Ultra Clean Holdings (UCTT – Research Report) today and set a price target of $48.00.
Krish Sankar has given his Buy rating due to a combination of factors that highlight both opportunities and challenges for Ultra Clean Holdings. The company has demonstrated resilience by posting a slight beat in its December quarter, driven by strong demand in AI and HBM-related sectors, which positively impacts its CMP and chemistry plating business. Additionally, Ultra Clean Holdings is poised to benefit from a potential recovery in the NAND WFE market, which could serve as a significant growth catalyst.
However, there are some concerns, particularly regarding the company’s exposure to the Chinese market. While Ultra Clean Holdings can still ship to Chinese semiconductor customers from its Shanghai facility, this exposure could be a risk due to potential future sanctions. Despite these challenges, the company’s ability to navigate these complexities and its strategic positioning in key growth areas underpin Sankar’s Buy rating, with a price target adjustment to $48.
Sankar covers the Technology sector, focusing on stocks such as Pure Storage, Lam Research, and Micron. According to TipRanks, Sankar has an average return of 19.5% and a 61.85% success rate on recommended stocks.