Canaccord Genuity Maintains a 'Buy' on OmniVision (OVTI); Looking Inexpensive on Substantially Reduced Estimates
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Price: $29.38 --0%
Rating Summary:
2 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
Rating Summary:
2 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 12 | New: 19
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Canaccord Genuity maintains a 'Buy' on OmniVision Technologies (NASDAQ: OVTI) price target lowered to $25.
Canaccord analyst, Bobby Burleson, said, "We are buyers of OVTI in what is likely to be a meaningful selloff following yesterday’s weak outlook. While we failed to anticipate weaker-than-seasonal guidance for CQ3, and were therefore too early with our upgrade, the stock looks too cheap (~7x in after hours trading on our aggressively cut C2011E EPS) to warrant a downgrade given the company remains positioned for healthy participation in a major product cycle. A combination of factors impacted guidance, including weak PC trends (15% of revs), broad caution among customers (including smartphone customers) regarding the macro environment, and delays in getting 8MP BSI-2 out the door. We believe Apple (Nasdaq: AAPL) has moved to multiple sources on iPhone4S/5 and the above delay may have pushed out OVTI’s full participation into the JanQ. Checks continue to show strong production with subcons in CQ3 and management confirms the builds are for key customer ramps."
For more ratings news on OmniVision Technologies click here and for the rating history of OmniVision Technologies click here.
Shares of OmniVision Technologies closed at $24.82 yesterday.
Canaccord analyst, Bobby Burleson, said, "We are buyers of OVTI in what is likely to be a meaningful selloff following yesterday’s weak outlook. While we failed to anticipate weaker-than-seasonal guidance for CQ3, and were therefore too early with our upgrade, the stock looks too cheap (~7x in after hours trading on our aggressively cut C2011E EPS) to warrant a downgrade given the company remains positioned for healthy participation in a major product cycle. A combination of factors impacted guidance, including weak PC trends (15% of revs), broad caution among customers (including smartphone customers) regarding the macro environment, and delays in getting 8MP BSI-2 out the door. We believe Apple (Nasdaq: AAPL) has moved to multiple sources on iPhone4S/5 and the above delay may have pushed out OVTI’s full participation into the JanQ. Checks continue to show strong production with subcons in CQ3 and management confirms the builds are for key customer ramps."
For more ratings news on OmniVision Technologies click here and for the rating history of OmniVision Technologies click here.
Shares of OmniVision Technologies closed at $24.82 yesterday.
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