UPDATE: JP Morgan Upgrades OmniVision Technologies to Overweight on iPhone 5 Prospects

JP Morgan raises its rating on OmniVision Technologies

from Neutral to Overweight and maintains its price target at $21. JP Morgan comments, "With OVTI down 17.5% in May (S&P 500 down 6.1%), we think riskreward is tilting favorable and we are becoming more constructive regarding OmniVision's prospect of winning back the high-resolution CIS slot opportunity on the next-generation Apple iPhone, widely expected to be introduced in 2H12. OVTI's BSI-2 products are now shipping in volume, and we believe 65nm wafer starts at TSMC are ramping in order to meet OVTI's 8MPx product needs (e.g. the OV8850). The Digitimes report regarding related growth prospects at King Yuan and Tong Hsing rings true to us." OVTI closed at $15.20 on Wednesday.