Wedbush Maintains Neutral On OmniVision, Raises PT To $27
In a research report published today, Wedbush analyst Betsy Van Hees maintained a Neutral rating on OmniVision Technologies (NASDAQ: OVTI) and raised her price target to $27 (from $19) ahead of the company’s release of its FQ1 results.
Van Hees wrote, “Although we continue to believe Sony is the key CIS supplier to Apple’s next-gen products, checks suggest strong mobile phone builds from Asian markets, particularly China, drove strong unit demand, despite aggressive ASPs in low-end resolution MP sensors. We expect FQ1 results to be near the high end of guidance ranges ($360MM to $400MM (9% to 21% Q/Q)/$0.43 to $0.63) and above the Street ($382MM/$0.52) and our ($379MM/$0.52) estimates. Therefore, we are increasing our pro forma EPs estimate to $0.61 on revenue of $392MM (19% Q/Q).”
Van Hees added, “While we believe much of the anticipated market share loss at APPL is now in expectations, our LT concerns of increasing competitive landscape in auto/security and the challenging environment in the highly price competitive and unpredictable Asian handset market remain unchanged. However for the time being, we don’t expect much movement in the stock given the buyout offer on the table from HCM of $29 in cash per share. Our new 12-month PT of $27 (from $19) is based upon about 19x (from 14x) our CY:15 pro forma EPS estimate of $1.42 (from $1.35).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Betsy Van Hees has a total average return of 23.5% and a 75% success rate. Van Hees has 55.7% average return when recommending OVTI, and is ranked #91 out of 3261 analysts.