ZRAN Facing Fresh And Persistent Challenges
Analysts at Oppenheimer & Co reiterate their "outperform" rating on Zoran Corporation (NASDAQ: ZRAN), while reducing their estimates for the company. The target price for ZRAN has been reduced to $11.
According to Oppenheimer & Co, “In a replay of 1Q10, Zoran met downbeat quarterly targets but widely missed guidance. The DTV inventory correction that trimmed 2Q sales is over, but Zoran and its main DTV customers are now facing fresh and perhaps more persistent challenges.”
“The first is newfound aggressiveness by tier-1 TV-makers, who are now fighting for the low-end promo models that had been the staple of Zoran's customers. To boot, execution lapses have kept Zoran from fully participating in the first round of connected TV sales. Zoran's TV business can point to a few rays of hope (including a tier-1 FRC win), but it's hard to avoid the unpleasant conclusion that 2010 will be a lost year for what was Zoran's biggest business,” the analysts add.
Oppenheimer has lowered its EPS estimate for 2010 from -$0.04 to -$0.19.
