01:41 PM EDT, 07/25/2024 (MT Newswires) -- Universal Display ( OLED ) is expected to beat Q2 revenue forecasts and slightly raise full-year revenue guidance mid-point, driven by global smartphone market recovery and anticipated growth in artificial intelligence-enabled smartphones launching in H2, Oppenheimer said in a note Thursday.

Global smartphone shipment grew 6% year-over-year in Q2, the largest increase since Q2 of 2021. This growth, along with new product launches like OLED iPad Pros and flagship Android phones, is expected to benefit the company, Oppenheimer said.

Despite concerns about potential overvaluation, Universal Display's ( OLED ) stock has room to grow into 2025 and 2026, with innovations like foldable phones boosting revenue, Oppenheimer said. The investment firm also expects Universal Display ( OLED ) to see up to 10% incremental revenue from Apple's ( AAPL ) iPhone's partial adoption of foldable design, according to the note.

However, a foldable iPhone is "not the only sizable growth driver" for the company in 2026, Oppenheimer said.

"We also expect blue emitter's commercial shipment, production ramp of gen 8.5 OLED fabs, and higher OLED penetration (foldable included) in [information technology] markets to support potential revenue growth acceleration in 2025," Oppenheimer said.

The company is set to release its Q2 earnings report on Aug. 1.

Oppenheimer maintained its outperform rating on Universal Display ( OLED ) with a price target of $250.

Price: 225.93, Change: +1.86, Percent Change: +0.83