OmniVision Technologies Lowered to “Market Perform” at Oppenheimer (OVTI)
OmniVision Technologies (NASDAQ:OVTI) was downgraded by stock analysts at Oppenheimer from an “outperform” rating to a “market perform” rating in a note issued to investors on Friday, TheFlyOnTheWall.com reports. They currently have a $21.00 price objective on the stock. Oppenheimer’s target price would suggest a potential upside of 14.07% from the stock’s previous close.
The analysts wrote, “We are downgrading OVTI to Perform from Outperform and removing our $21 PT. Our thesis was predicated on 1) strong China sales driving volume growth and 2) improving gross margin from favorable product mix and manufacturing efficiency. While we do believe there is more room for growth for OVTI in China, we’ve changed our mind on gross margin expansion due to competition and volatility in product mix each quarter. Additionally, as we update our model to reflect our new outlook, we see lower EPS growth. We lower our FY14E revenue/EPS from $1,548M/$1.73 to $1,522M/$1.66. We believe a value of $16-$17 seems fair based on 10x our FY14E non-GAAP EPS of $1.66, implying little upside from here.”
OmniVision Technologies (NASDAQ:OVTI) traded down 13.47% during mid-day trading on Friday, hitting $15.93. 3,243,152 shares of the company’s stock traded hands. OmniVision Technologies has a 1-year low of $12.06 and a 1-year high of $20.48. The stock’s 50-day moving average is $17.04 and its 200-day moving average is $15.91. The company has a market cap of $870.7 million and a price-to-earnings ratio of 23.01. OmniVision Technologies also was the recipient of some unusual options trading on Tuesday. Investors purchased 9,148 call options on the stock. This is an increase of 475% compared to the average daily volume of 1,592 call options.
OmniVision Technologies (NASDAQ:OVTI) last announced its earnings results on Thursday, August 29th. The company reported $0.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.43 by $0.12. The company had revenue of $373.70 million for the quarter, compared to the consensus estimate of $376.58 million. During the same quarter in the prior year, the company posted $0.21 earnings per share. The company’s quarterly revenue was up 44.8% on a year-over-year basis. On average, analysts predict that OmniVision Technologies will post $1.73 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks upgraded shares of OmniVision Technologies from a “neutral” rating to an “outperform” rating in a research note to investors on Thursday, June 20th. They now have a $24.00 price target on the stock. Separately, analysts at TheStreet upgraded shares of OmniVision Technologies from a “hold” rating to a “buy” rating in a research note to investors on Monday, June 10th. Finally, analysts at Wedbush raised their price target on shares of OmniVision Technologies from $16.00 to $18.00 in a research note to investors on Monday, June 3rd. They now have a “neutral” rating on the stock.
Seven research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $21.10.
OmniVision Technologies, Inc (NASDAQ:OVTI) designs, develops and markets integrated and semiconductor image-sensor devices.
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