Ultra Clean price target lowered to $40 from $60 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Ultra Clean to $40 from $60 and keeps a Buy rating on the shares. The firm notes Ultra Clean reported revenue in line with expectations while experiencing a negative mix shift away from its higher margin Services business as a large memory customer cut its wafer starts during the quarter. While these margin headwinds are expected to persist, Ultra Clean’s topline outlook remains relatively unchanged, Craig-Hallum adds.