OmniVision Technologies is enjoying a 1.1% jump so far today, outperforming the broad market thanks in part to an early-morning update. Hours before the opening bell sounded, Baird lifted its opinion of OVTI to neutral from underperform. The brokerage also upped its target price on the stock dramatically, moving it to $22 from $14.
In a research note, Baird analysts noted that the upgrade comes on the heels of a decline in OVTI that has made the stock a potential bargain. Additionally, the firm's gross margins are expected to improve going forward. Baird lifted its fiscal year 2008 and 2009 earnings estimates to $1.81 from $1.64 and to $1.59 from $1.24, respectively.
The stock has bounced above its 10-day moving average today but remains below its 20-day trendline, whish has descended into the 20 region. The last time OVTI managed a daily close north of this pair of trendlines was October 15. The stock is still perched above its 10-month and 20-month moving averages, which are themselves on pace to forge a bullish crossover.