Ultra Clean price target lowered to $45 from $52 at Needham

Needham analyst Charles Shi lowered the firm’s price target on Ultra Clean to $45 from $52 after its Q2 earnings miss but keeps a Buy rating on the shares. Given its position in the semiconductor supply chain, the company should outperform WFE in the new upcycle, and the stock could see quick movement as WFE demand starts to pick back up, the analyst tells investors in a research note. The firm adds that its price target cut reflects more limited forecast horizon to one year as it now uses 2024 non-GAAP EPS estimate as the basis for its valuation, consistent with the rest of its coverage universe.