Needham & Company maintains a 'Buy' on OmniVision (OVTI); Cutting Estimates on Lower Dollar Content in the iPhone 5
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Price: $14.33 -1.24%
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade OVTI Now!
Needham & Company maintains a 'Buy' on OmniVision Technologies (NASDAQ: OVTI) price target of $18.00 (from $24.00).
Analyst, Rajvindra S. Gill, said, "According to our checks, we believe Sony (NYSE: SNE) has retained its position at Apple (Nasdaq: AAPL), supplying the 8MP backcamera sensor for the upcoming iPhone 5. Meanwhile, OVTI is supplying the 1.3 MP front-sensors, plus an extra pixel for image stabilization. We estimate OVTI’s dollar content is around $1.71 per unit. Our initial expectations were that Apple would dual-source the 8MP sensor socket between OVTI and Sony based on the company’s bullish commentary on 8MP shipments and strong revenue guidance ($40MM over) for F1Q12 (July). We therefore assumed OVTI would get 50% of iPhone 5 shipments, based on our estimates."
Gill slashes FY12 EPS estimate from $1.60 to $1.05 and FY13 from $2.05 to $1.35, but said, we still think there is upside potential for the shares even with the reduction in estimates, and think the stock is trading at a compelling valuation.
For an analyst ratings summary and ratings history on OmniVision Technologies click here. For more ratings news on OmniVision Technologies click here.
Shares of OmniVision Technologies closed at $13.77 yesterday, with a 52 week range of $10.15-$30.85.
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Analyst, Rajvindra S. Gill, said, "According to our checks, we believe Sony (NYSE: SNE) has retained its position at Apple (Nasdaq: AAPL), supplying the 8MP backcamera sensor for the upcoming iPhone 5. Meanwhile, OVTI is supplying the 1.3 MP front-sensors, plus an extra pixel for image stabilization. We estimate OVTI’s dollar content is around $1.71 per unit. Our initial expectations were that Apple would dual-source the 8MP sensor socket between OVTI and Sony based on the company’s bullish commentary on 8MP shipments and strong revenue guidance ($40MM over) for F1Q12 (July). We therefore assumed OVTI would get 50% of iPhone 5 shipments, based on our estimates."
Gill slashes FY12 EPS estimate from $1.60 to $1.05 and FY13 from $2.05 to $1.35, but said, we still think there is upside potential for the shares even with the reduction in estimates, and think the stock is trading at a compelling valuation.
For an analyst ratings summary and ratings history on OmniVision Technologies click here. For more ratings news on OmniVision Technologies click here.
Shares of OmniVision Technologies closed at $13.77 yesterday, with a 52 week range of $10.15-$30.85.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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