Bull of the Day: OmniVision Technologies (OVTI)

OmniVision Technologies (OVTI) is an OEM of CMOS image sensors and support circuitry used within handsets, notebooks and other mass markets. Second quarter earnings were much better than the Zacks Consensus, and the flattish guidance for the next quarter appears to be much better than normal seasonality.

The company has leveraged its superior technology to solidify its position in the handset market and also expand into other areas. We like its product roadmap, growth prospects and management execution, and believe that it will be able to deal with the short product life cycles, temporary slowdown in the computing market and stay ahead of the stiff competition in its served markets.

We are therefore upgrading OVTI shares to Outperform, which indicates that we expect the company to outperform the market in the next three to six months. Our $34.00 target price (20.7 P/E), reflects this view.

OMNIVISION TECH (OVTI): Free Stock Analysis Report

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