Needham Lifts PT on Ultra Clean Holdings (UCTT) Stock
Ultra Clean Holdings, Inc. (NASDAQ:UCTT) is one of the Most Undervalued Semiconductor Stocks to Buy According to Analysts. On July 29, Needham analyst Charles Shi lifted the price target on the company’s stock to $30 from $26, while keeping a “Buy” rating, as reported by The Fly. As per the analyst, Ultra Clean Holdings, Inc. (NASDAQ:UCTT) posted strong Q2 2025 results, with revenue beating the Street’s estimate, mainly because of upside from its China business.
A technician inspecting a series of critical ultra-high purity components.
Furthermore, the analyst noted that Q3 2025 revenue was guided slightly above the Street. Ultra Clean Holdings, Inc. (NASDAQ:UCTT)’s management sees cost reduction benefits to reflect gradually and more pronounced in Q4 2025, highlighted Needham. Ultra Clean Holdings, Inc. (NASDAQ:UCTT) saw total revenues of $518.8 million, with Products contributing $454.9 million and Services adding $63.9 million. For Q3 2025, it expects revenue of between $480 million – $530 million.
Ultra Clean Holdings, Inc. (NASDAQ:UCTT) remains confident in its ability to surpass the broader semiconductor industry growth, thanks to its capability to navigate evolving conditions, expand its addressable market, gain share, and deliver innovative products and services which advance the multi-year growth strategy.
Frontier Capital Management, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:
“Another underperformer was Ultra Clean Holdings, Inc. (NASDAQ:UCTT), a manufacturer of critical subsystems and services for semiconductor capital equipment manufacturers and semi fabs. While Ultra Clean’s December quarter results exceeded consensus expectations, its outlook for the March quarter disappointed due to product qualification delays at a top Chinese customer and weakening semiconductor equipment demand in China. Management expects the qualification delays to be resolved soon and still anticipates overall company sales to outpace semiconductor wafer fabrication equipment (WFE) industry spending in 2025. Longer term, Ultra Clean is well positioned to gain market share through new design wins at top-tier semi cap equipment manufacturers.”
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