Barclays Begins Coverage on Ultra Clean (NASDAQ:UCTT)

Key Points

• Barclays initiated coverage of Ultra Clean with an “equal weight” rating and a $65 price target, implying 35.14% upside from the prior close.
• Analyst sentiment is mixed but leans positive: the consensus is “Moderate Buy,” with an average price target of $107; six analysts rate the stock Buy, two Hold, and one Sell.
• Ultra Clean beat quarterly expectations, posting EPS of $1.15 versus $0.94 estimated and revenue of $759 million versus $727.55 million; revenue rose 48.8% year over year.

Investment analysts at Barclays assumed coverage on shares of Ultra Clean (NASDAQ:UCTT - Get Free Report) in a note issued to investors on Friday, Marketbeat.com reports. The firm set an "equal weight" rating and a $65.00 price target on the semiconductor company's stock. Barclays's target price indicates a potential upside of 35.14% from the stock's previous close.

A number of other research firms have also commented on UCTT. Oppenheimer boosted their price objective on Ultra Clean from $115.00 to $150.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 4th. Needham & Company LLC lowered their target price on Ultra Clean from $125.00 to $80.00 and set a "buy" rating for the company in a research note on Wednesday, October 28th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Ultra Clean in a report on Wednesday, November 4th. Freedom Broker initiated coverage on shares of Ultra Clean in a research report on Friday, October 9th. They set a "buy" rating and a $127.00 price target on the stock. Finally, TD Cowen decreased their price objective on shares of Ultra Clean from $140.00 to $100.00 and set a "buy" rating on the stock in a report on Wednesday, October 28th. Six equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $107.00.

Ultra Clean Price Performance

Shares of Ultra Clean stock opened at $48.10 on Friday. The stock has a market capitalization of $2.31 billion, a price-to-earnings ratio of 84.39, a P/E/G ratio of 0.47 and a beta of 1.90. The firm's 50-day moving average price is $61.98 and its two-hundred day moving average price is $74.33. The company has a current ratio of 2.79, a quick ratio of 1.28 and a debt-to-equity ratio of 0.78. Ultra Clean has a 1-year low of $21.49 and a 1-year high of $144.22.

Ultra Clean (NASDAQ:UCTT - Get Free Report) last posted its earnings results on Tuesday, October 27th. The semiconductor company reported $1.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.94 by $0.21. The company had revenue of $759.00 million during the quarter, compared to analysts' expectations of $727.55 million. Ultra Clean had a net margin of 1.09% and a return on equity of 12.00%. Ultra Clean's quarterly revenue was up 48.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.28 earnings per share. On average, equities analysts predict that Ultra Clean will post 2.99 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ultra Clean

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Maverick Capital Ltd. bought a new position in Ultra Clean in the first quarter valued at about $1,263,000. Lisanti Capital Growth LLC bought a new stake in Ultra Clean during the 2nd quarter worth about $6,600,000. Lombard Odier Asset Management Europe Ltd bought a new stake in Ultra Clean during the 1st quarter worth about $3,197,000. Insight Wealth Strategies LLC acquired a new position in Ultra Clean during the 2nd quarter valued at about $6,768,000. Finally, Castleark Management LLC acquired a new position in Ultra Clean during the 1st quarter valued at about $6,226,000. 96.06% of the stock is owned by institutional investors and hedge funds.

About Ultra Clean

Ultra Clean Holdings, Inc. NASDAQ: UCTT provides products and services used in the manufacture of semiconductor and other high-technology equipment. Its offerings include critical subsystems, components and assemblies, along with engineering and manufacturing services that help equipment makers design, build and support their systems. The company's products include gas and chemical delivery systems, fluid and precision-engineered components, and assemblies made for use in demanding manufacturing environments.

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