Re: OVTI,
Analysts Remain Skeptical
Tristan Gerra, analyst at Robert W. Baird & Co., isn't convinced OmniVision can maintain its momentum over the long-haul, questioning whether the company is getting ahead of itself.
"Revenue growth should decelerate and inventory risk is increasing as OmniVision is shipping ahead of end-market demand and competitors are ramping CMOS image sensor supply," wrote Gerra, who rates the stock underperform.
Rivals are readying new products, including Micron Technology Inc. , Samsung Electronics Co., Toshiba Corp. and Sony Corp., analysts said. This should spark pricing pressures, putting pressure on profit spreads.
"Competition is likely to intensify," wrote CIBC World Markets analyst Daniel Gelbtuch, who reiterated his sector performer rating on OmniVision's stock. "With margin recovery not yet evident, we remain on the sidelines."
Toshiba Corp. and Sony Corp., analysts said, are ramping output of CMOS image sensors for use in mobile phones. Meanwhile, Micron is maintaining its market share lead at Motorola Inc. and scored a recent deal at Nokia Corp.
Full Story: marketwatch.com
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