OmniVision climbs after analyst upgrades, says he expects market share to climb this year
By APThursday, March 4, 2010
OmniVision shares rise after analyst upgrade
SAN FRANCISCO — OmniVision Technologies Inc. shares climbed Thursday after an analyst upgraded the maker of image sensors for digital cameras and other devices, predicting it will increase its market share this year.
OmniVision shares rose $1.25, or 8.8 percent, to $15.46 in afternoon trading. In the past year, the stock has traded between $6.04 and $17.48.
In a client note, R.W. Baird analyst Tristan Gerra raised his rating for the stock to “Outperform” from “Neutral” and his share price target to $20 from $15.
Gerra said his upgrade stems from checks that indicate the company snagged new deals that will put its products in smart phones from two major North America-based smart phone makers in the second half of this year. He also believes the company is now the only supplier for a major PC original equipment manufacturer.
“We expect Omnivision will gain significant market share this year against its main competitor, primarily with higher-resolution sensors along with ramps into dual-sensor devices,” he said.
OmniVision competitors include STMicroelectronics NV, Samsung Electronics Co. and Sony Corp.
