AG Edwards initiated coverage on O2Micro (OIIM) with buy.
Analyst Rick Faust says the company is well-positioned in the notebook computing market. He thinks O2Micro's proprietary system-on-chip designs, which provide efficient power management for maximizing battery life, permit high levels of integration that create a competitive advantage over analog solutions.
Faust thinks the notebook market is growing faster than overall PCs because notebooks have come down in price and adopted WiFi technology. He notes opportunities in liquid crystal displays, such as monitors and TVs, and other consumer electronics devices. Faust sees 31 cents 2003 earnings per share, and 55 cents in 2004. He has a $30 target.