Zeev's Turnips Patch-No Politics (ZEEV)

[extelecom]

OmniVision (OVTI) Jefferies & Co initiates BUY. Target $22. Firm believes that the co is well positioned to take advantage of the dramatic growth forecast for the camera phone mkt. However they are concerned regarding: 1) the successful ramp of its new OmniPixel product family, 2) their expectation for intense competition in the sensor market in CY05, and 3) the overhang from the ongoing SEC inquiry. Firm recommends those investors with an appetite for greater risk/return buy OVTI at these levels, as they conservatively expect 25+% upside over its relatively low current valuation, even after discounting future earnings for potential mkt and execution risks.