Vimicro (VIMC) PT Raised to $13 at Needham & Company

Needham & Company analyst Rajvindra Gill reiterated a Strong Buy rating and boosted its price target on Vimicro International Corp. (NASDAQ: VIMC) to $13.00 (from $10.00).

Gill commented, "VIMC posted yet another stellar beat and raise quarter driven by contract order growth and reduced OPEX due to government grants. We are increasing our price target to $13 (vs. $10) based on growing contract size (Phase III Taiyuan City in Shanxi province + new cities, Hebei, Guangdong, Hunan) and improved earnings visibility. VIMC is on track to grow sales 50%+ in '14 and will grow another 50% in '15. With $65MM credit line secured to fuel revenue growth, ongoing government grants to reduce OPEX, contract sizes increasing both in size and scope and the SVAC standard increasingly being adopted as the mandatory security surveillance standard by the Chinese government, we see continued upside for the shares. Maintain Strong Buy, up $13 PT, which implies P/E 18x 2015 Non-GAAP EPS of $0.70 (ex-cash) or 2.3x EV/sales."

The firm raised FY 2014 EPS from $0.10 to $0.23 and FY 2015 EPS from $0.60 to $0.70.

For an analyst ratings summary and ratings history on Vimicro International Corp. click here. For more ratings news on Vimicro International Corp. click here.

Shares of Vimicro International Corp. closed at $9.35 yesterday.

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