Oppenheimer Sees Into Future, Raises Estimates for OmniVision Technologies
June 08, 2010 10:19 AM
Oppenheimer analysts Yair Reiner and Michael Suh are upbeat about Omnivision Technologies (NASDAQ: OVTI) and its competitiveness, and rate it at Outperform.
Omnivision is rapidly gaining marketshare and putting more room between itself and its competitors as the industry leader in backside illumination (BSI) technology.
According to the analysts, "Our checks suggest that OmniVision enjoys close to a clean sweep of the 2010 5MP and 8MP smartphone designs at Apple, HTC, RIMM, and MOT."
Oppenheimer projects OVTI to be the BSI industry leader in the foreseeable future. "Conversations with OmniVision's channel partners and competitors suggest its
current leadership will be difficult to narrow in the next 12-18 months. Though BSI has become indispensable to winning smartphone designs, OmniVision's key competitors have only recently begun focusing real effort on this difficult process technology. Some competitors say it's too hard and aren't even trying."
The 12-18 month price target is $23.00. OVTI is currently trading at $18.07.
