From Standard & Poor's Equity Research
Pacific Growth reiterates its neutral rating on OmniVision Technologies (OVTI) after the company posted first quarter results and gave second quarter guidance.
Analyst Satya Chillara says the guidance came out below expectations and notes concern with factors such as intense price pressure. The analyst expects business to get tough and feels the company could be losing business from its most important customers. Chillara sees $1.30 fiscal year 2007 (ending Oct) earnings per share (EPS) on $566.9 million revenue. The analyst also estimates fair valuation to be 11.5 times fiscal year 2007 EPS, or $15 per share, and notes that the stock is heavily shorted and can show volatility.