Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of OmniVision Technologies
So what: Along with the upgrade, Canaccord raised its price target on the stock to $38 per share, representing about 24% worth of upside to yesterday's closing price. Canaccord's bullish outlook reflects channel checks that suggest healthy near-term orders, as well the generally favorable health of Apple's
Now what: Don't let today's pop keep you from looking into OmniVision. As Canaccord writes, "Momentum persists for Apple's component suppliers, with healthy orders delivered to assembly and test houses for the third-quarter." It's usually best to sidestep analyst-fueled price rallies, but with the stock still trading at a reasonable forward P/E of 11, buying into OmniVision's stock and operating momentum seems like a decent move.
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