J.P. Morgan Maintaining OmniVision Technologies as Top 3 Pick

J.P. Morgan Chase & Co. is out with a research report on OmniVision Technologies, Inc.

and it has an Overweight rating and a $36.50 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "OVTI decreased 23.7% in September (S&P 500 down 7.2%) weighed down by disappointing F2Q12 guidance and competitive threats (e.g. Sony and Samsung). OVTI reported F1Q12 results aligning with our estimates but issued F2Q results well below expectations. The weak guidance reflects increasing macro uncertainty, particularly within notebooks and tablets. We do not believe the outlook reflects significant market share loss. In our view OVTI's ongoing transition to second-generation BSI positions the company to maintain a market leading position in CIS for at least another 12 months. We think negative sentiment regarding the next down-cycle is priced in too soon, presenting an opportunity for a short-term long trade." Shares of OVTI lost 10 cents on Friday to close at $14.04, a loss of 0.7%.