Ultra Clean a Spiffy Growth Play

Tags: uctt
30 Nov 10:10pm
Posted by ZacksResearch
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Semiconductor supplier Ultra Clean Holding, Inc. (UCTT) keeps its Buy recommendation from Zacks senior semiconductor industry analyst Ken Nagy, CFA.  His latest research report on the company supplies us with the details:

'Ultra Clean is a supplier of gas panels to semiconductor manufacturing OEMs. The company is expanding its product line to include frame assemblies, top plate assemblies and process modules.

'The Seiger acquisition is progressing seamlessly and the company is transitioning several product lines to Shanghai. This has the effect of diversifying the revenue base as well as growing margins. Consequently, we would recommend investing in shares of UCTT and are reiterating our Buy rating.

'The shares are currently trading at a 15.3x multiple of our fiscal 2008 EPS estimate. The company's diversification into non-gas panel revenue is encouraging. In the last three quarters, revenue and earnings rebounded sharply. We believe that the stock will trade above the current valuation metrics. Consequently, we are setting a target price of $16.00, which corresponds to an 17.9x P/E multiple.'

Read the full analyst report on UCTT.




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