Global Hunter Reiterates Buy on ZOOM Technologies (ZOOM)

Global Hunter is out with its report today on ZOOM Technologies

, reiterating Buy. In a note to clients, Global Hunter writes, "Yesterday, ZOOM Technologies Inc. reported Q1 results that exceeded its guidance. Gross margin continued to be strong thanks to the greater contribution from high-end phones. R&D spending ramped up significantly during the quarter and is expected to benefit the company in 2H11. We were encouraged by the steady growth and margin upside provided by its own brand products. Shares of its peers are trading at low- to mid-teens levels while ZOOM shares are trading at 4x our FY11 EPS estimate, which represents an attractive entry point in our view. We reiterate our Buy rating and $8 price target, or ~9x our FY11 EPS estimate." At the time of posting, shares of ZOOM were trading pre-market at $3.40, down 5.56% from Monday's close.