Shares of organic light-emitting diode (OLED) technology maker Universal Display (PANL) are down $6.39, or 12%, at $45.58 after Canaccord Genuity’s Jonathan Dorsheimer this morning reiterated a Hold on the stock and a $48 price target, writing that it seems unlikely Apple (AAPL) will use the technology in its i-devices any time soon.
Dorsheimer believes, too, that a European patent license hearing in Germany last week, which was mentioned negatively by CNBC, will “be an increasing focus going forward” for PANL.
Dorsheimer was responding to a patent filing by Apple on that was written about last week covering a novel kind of OLED display. Patently Apple had a nice summary of the filing last Thursday. It was among factors that helped drive up PANL shares 17% on Friday.
But Dorsheimer thinks nothing in the way of Apple’s use of OLED is imminent:
Apple’s recent patent filing seems to have gone viral among investors; however, we feel it�s an irrelevant data point. We feel that Apple has always wanted to use OLEDs but performance and sourcing has limited the choices. With Samsung providing 90% of the world’s capacity, we don’t see this changing until adequate second sourcing evolves (LGD, AUO, CMI), likely in 2013. We do not see Apple entering manufacturing of the screens, and thus there would be no direct royalty implications from Apple adopting OLEDs.
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