Wedbush Maintains Neutral On Omnivision Following Hua Capital Non-Binding Proposal
Omnivision (OVTI) issued a press release announcing that it has received a preliminary non-binding proposal on August 12 to acquire all outstanding common shares for $29 per share in cash from Hua Capital Management (HMC).
In reaction to the proposal, Wedbush analyst Betsy Van Hees reiterated a Neutral rating on OVTI with a $19 price target, in a research report issued to clients on August 14.
Van Hees commented: “While thus far we haven’t been able to find any public information on Hua Capital Management (HMC),we were able to find a LinkedIn profile of Xisheng(Steven) Zhang, who according to the profile has been Partner and President of HCM since June 2014. The LinkedIn profile states that prior to HCM, Mr. Zhang was a Venture Partner at WestSummit Capital Management from April 2013 through May 2014 and prior to WestSummit, Mr. Zhang was a Product Marketing Manager at Agilent Technologies and President/Founder ofAccelicon, an EDA start-up. Mr. Zhang’s profile on LinkedIn alsoindicates that Hua Capital Management is a GP of Beijing’s IC Design and Packaging Sub-Fund established to cultivate and accelerate its overall IC industry.”
The analyst concluded, “We believe with a competing bid to be highly unlikely, so much uncertainty around whether the Board will approve the unsolicited offer from HCM and OVTI’s business facing several LT fundamental challenges that today’s move up in the stock has created an opportunity for investors to take profits.”
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Betsy Van Hees has a 20.9% average return and a 69% success rate. Van Hees has a 55.7% average return when recommending OVTI, and is ranked #107 out of 3222 analysts.