Needham & Company Upgrades OmniVision Technologies (OVTI) to Buy; Taking Pictures with Apple (AAPL)
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Price: $29.38 --0%
Rating Summary:
2 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
2 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Needham & Company upgraded OmniVision Technologies (NASDAQ: OVTI) from Hold to Buy with a price target of $24.00.
Analyst, Rajvindra S. Gill, said, "OVTI’s share price has been a rollercoaster over the past year, peaking at $36 in March ‘11 and falling to as low as $10 in November ’11. Year to date, OVTI shares have rebounded considerably, up 60%. While we initially believed Samsung was slotted for the 5MP socket for the iPad 3, according to third-party teardown sites, OVTI is supplying both the 5MP BSI-2 back-camera and 0.3 VGA front-camera. This news is consistent with OVTI’s above-consensus guidance ($35MM+) and checks that indicate OVTI has meaningfully increased its capacity at TSMC (NYSE TSM). With an iPad 3 design win, the upside to revenues and earnings would be significant. In our updated model, we assume Apple (Nasdaq: AAPL) ships 75MM iPad units in FY13, of which 70% are iPad 3 (55MM) and 30% iPad 2 (20MM) (vs. our previous 37MM iPad 3). We calculate OVTI would generate blended ASP of $3.28 per unit ($2.80 5MP + $0.48 VGA)."
"We are increasing our FY13 estimates to $975.0MM/$1.60 (vs. $920.0MM/$1.35). We are also introducing our FY14 estimates of $1.1BN/$2.00."
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 $19.43 yesterday.
Analyst, Rajvindra S. Gill, said, "OVTI’s share price has been a rollercoaster over the past year, peaking at $36 in March ‘11 and falling to as low as $10 in November ’11. Year to date, OVTI shares have rebounded considerably, up 60%. While we initially believed Samsung was slotted for the 5MP socket for the iPad 3, according to third-party teardown sites, OVTI is supplying both the 5MP BSI-2 back-camera and 0.3 VGA front-camera. This news is consistent with OVTI’s above-consensus guidance ($35MM+) and checks that indicate OVTI has meaningfully increased its capacity at TSMC (NYSE TSM). With an iPad 3 design win, the upside to revenues and earnings would be significant. In our updated model, we assume Apple (Nasdaq: AAPL) ships 75MM iPad units in FY13, of which 70% are iPad 3 (55MM) and 30% iPad 2 (20MM) (vs. our previous 37MM iPad 3). We calculate OVTI would generate blended ASP of $3.28 per unit ($2.80 5MP + $0.48 VGA)."
"We are increasing our FY13 estimates to $975.0MM/$1.60 (vs. $920.0MM/$1.35). We are also introducing our FY14 estimates of $1.1BN/$2.00."
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 $19.43 yesterday.
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