Needham & Company Reiterates a 'Buy' on OmniVision Technologies (OVTI); Seeing Upside to Results

Needham & Company reiterates a 'Buy' on OmniVision Technologies (NASDAQ: OVTI) price target of $24.00.

Analyst, Rajvindra S. Gill, said, "We continue to see several quarters of beat and raises for OVTI following its design win in the new iPad and the product’s strong momentum thus far in 2012. We assume AAPL ships 75MM iPad units in FY13, 55MM of which are new iPads. Given OVTI is supplying both the 5MP BSI-2 back-camera and the 0.3 VGA front-camera, we calculate a blended ASP $3.28 per new iPad unit ($2.80 5MP + $0.48 VGA). We believe OVTI has the capacity and yields at BSI-2 TSMC 300mm 12-inch fab to maintain steady supply into the new iPad. We think better than expected new iPad sales could drive significant upside in OVTI’s valuation. While it is still unknown what vendor will supply the image sensor for the iPhone 5, we know OVTI is pushing hard for this design win. Since there has been speculation about the iPhone 5’s release in October, a win as the primary back-camera supplier could have significant implications for OVTI in 2012. We recommend the accumulation of OVTI shares leading up to earnings, particularly ahead of Apple's (Nasdaq: AAPL) earnings release on April 27.

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 $18.78 yesterday.

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