11:05 AM EDT, 07/03/2024 (MT Newswires) -- Universal Display ( OLED ) will likely see an acceleration in its revenue growth due to a stronger smartphone outlook this year, Oppenheimer said Wednesday in a note to clients.

"Our updated estimates assume a stronger iPhone and Android replacement cycle driven by new AI-features," the note said, adding the company is "uniquely positioned to benefit from such incremental growth due to OLED display's dominance among premium smartphones."

Oppenheimer raised Universal Display's ( OLED ) 2024 revenue and EPS estimates to $664.5 million and $4.90 from $656.7 million and $4.80.

It also raised its 2025 revenue and EPS estimates to $767.1 million and $5.71 from $755.5 million and $5.56.

"We expect AI features to drive an accelerated replacement cycle for iPhone in 2024," the note said.

"We believe other OEMs and chip makers will quickly follow Apple's implementation and try to provide more comprehensive hardware/software upgrades to Android phones, resulting in a stronger replacement cycle and better than expected handset market growth in 2024 and 2025," the firm said.

Oppenheimer noted that, according to reports from market research firm DSCC, the iPhone 16 Pro and Pro Max will have larger displays than last year's models.

The investment firm raised the company's price target to $250 from $200 and kept its outperform rating.

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