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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.
Interested in more info on OmniVision? Add it to your watchlist.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days.