OmniVision Technologies (NASDAQ:OVTI) Shares Undervalued Says Needham

Needham & Company reiterated their "Strong Buy" rating on OmniVision Technologies (NASDAQ:OVTI), saying they see the shares of the company as undervalued.

"We maintain our Strong Buy on OVTI and raise our price target following the company’s solid F2Q11 (Oct) results and F3Q11 (Jan) revenue guidance that was 18% higher than our estimates at the midpoint. With our revised Non-GAAP earnings of $2.20, -$7 of net cash per share, significant product cycles heading into 2011 and ASP acceleration, we believe the shares are currently undervalued. Hence, we estimate there is at least 40% additional upside over the next 12-months...Our FY11 and FY12 estimates increase to $882.5MM$1.95 (vs. $830.0MM/$1.70) and $970.0MM/$2.20 (vs. $900.0MM/$1.90), respectively."

Shares of OmniVision soared on Wednesday, closing at $31.02, gaining $2.73, or 9.65 percent. Needham raised their price target on them from $30 to $40.

Trading volume was over three times more than the 3-month daily average.