Say Cheese! OmniVision (OVTI) Rips on Bullish Barron's Outlook
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OmniVision Technologies Inc. (Nasdaq: OVTI) is making a big pre-market move Monday following a bullish report from Barron's over the weekend.
The Santa Clara, CA-based image sensor maker is poised to make some big gains over the forseeable future, with nearly three-quarters of its revs coming from the mobile phone market. Smartphone shipments ripped 74 percent in 2010, with an additional 49 percent move expected this year, according to research firm IDC.
The news and outlook is a boon for OmniVision, which typically draws $0.60 - $0.70 per traditional video sensor unit, with an additional $0.60 of additional revs possible with the addition of each additional megapixel. Barron's notes that OmniVision should see significant upside as most mobile devices are eschewing the one and two megapixel cameras in favor of eight megapixels.
OmniVision shares are trading rather cheap, Barron's says, at current price levels. With growth potential of about 13 percent between now and 2012, and $7.48 per share in cash, a P/E of about 9x forward earnings is one of the lowest in the sector. Analysts are looking for a price level somewhere in the $45 to $50 range, a 38.5 to 53.9 percent premium.
Though shares have fluctuated over the last month or so, Barron's says that OmniVision should firm up as its relationship with Taiwan Semi (NYSE: TSM) makes it a go-to for companies like Apple, and others that make Google (Nasdaq: GOOG) Android-based phones. Unlike Sony (NYSE: SNE) and Samsung, OmniVision is a supplier and not manufacturer of competitively branded products.
With OmniVision being rather hush-hush about its customers and prospects, instead letting its numbers do the talking, investors don't have to listen to hard to hear what they're saying.
OmniVision stock is trading 6.3 percent better ahead of the bell today.
The Santa Clara, CA-based image sensor maker is poised to make some big gains over the forseeable future, with nearly three-quarters of its revs coming from the mobile phone market. Smartphone shipments ripped 74 percent in 2010, with an additional 49 percent move expected this year, according to research firm IDC.
The news and outlook is a boon for OmniVision, which typically draws $0.60 - $0.70 per traditional video sensor unit, with an additional $0.60 of additional revs possible with the addition of each additional megapixel. Barron's notes that OmniVision should see significant upside as most mobile devices are eschewing the one and two megapixel cameras in favor of eight megapixels.
OmniVision shares are trading rather cheap, Barron's says, at current price levels. With growth potential of about 13 percent between now and 2012, and $7.48 per share in cash, a P/E of about 9x forward earnings is one of the lowest in the sector. Analysts are looking for a price level somewhere in the $45 to $50 range, a 38.5 to 53.9 percent premium.
Though shares have fluctuated over the last month or so, Barron's says that OmniVision should firm up as its relationship with Taiwan Semi (NYSE: TSM) makes it a go-to for companies like Apple, and others that make Google (Nasdaq: GOOG) Android-based phones. Unlike Sony (NYSE: SNE) and Samsung, OmniVision is a supplier and not manufacturer of competitively branded products.
With OmniVision being rather hush-hush about its customers and prospects, instead letting its numbers do the talking, investors don't have to listen to hard to hear what they're saying.
OmniVision stock is trading 6.3 percent better ahead of the bell today.
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