) to strong buy.
Analyst Rick Faust says OmniVision has pulled back nearly 25% from the mid-$17 range over the last three weeks, which creates an attractive buying opportunity. He says the stock now trades at just 27 times his 50 cents calendar 2003 earnings per share estimate, and 18 times his 75 cents fiscal 2004 estimate. Faust thinks shares can trade at 35 times his calendar 2004 earnings per share estimate, which suggests a $26 price target, or about 100% above the current level.
He notes OmniVision is the leader in the digital still camera (DSC) market, and will face no material competition at densities of two and three megapixels in the DSC market for complementary metal oxide semiconductors (CMOS) sensors. He says OmniVision also has multiple design wins in the fast growing market for cell phone cameras.