Common Show’s Samsung contract extension a constructive


© Reuters. Common Show’s (OLED) Samsung contract extension a constructive – Deutsche Financial institution

By Sam Boughedda

On Monday, Common Show (NASDAQ:) introduced the signing of long-term OLED materials provide and license agreements with Samsung (KS:) Show Ltd. (SDC).

The corporate stated the agreements, that are scheduled to run via to December 31, 2027, with a possible extension of two years, imply Common Show Company will proceed to provide its UniversalPHOLED phosphorescent OLED supplies and know-how to Samsung Show to be used in its OLED shows.

OLED shares jumped greater than 4% on the information.

Following the announcement, Deutsche Financial institution analysts stated the contract extension with Samsung removes some uncertainties for OLED.

“We view immediately’s contract extension with Samsung positively, because it removes uncertainty towards the tip of the contract and likewise weakens the bear argument that Samsung would undertake various emitter know-how after it acquired Cynora (a supplier of TADF supplies) earlier this yr,” stated the analysts, who’ve a Purchase score and $130 worth goal on OLED.

“We’re not shocked by the renewal given the lengthy working relationship between the 2 corporations, however it’s notable that Samsung selected to signal a brand new extension as a substitute of exercising the 2-year possibility (via 2024). Importantly, on account of the extension, we don’t anticipate any provide disruption on the finish of this yr,” the analysts continued.

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