Boston, MA 08/18/2014 (wallstreetpr) –Shares of camera sensor maker OmniVision Technologies, Inc. (NASDAQ:OVTI) were downgraded by a brokerage on Friday. The action follows after a day of another brokerage lifting its price target on the company’s stock following the company’s disclosures that it had received an unsolicited offer from a Chinese company that resulted in the share price vaulting 15% on Thursday.
Downgraded
Investment advisor, Robert W Baird, had downgraded the shares of OmniVision Technologies, Inc. (NASDAQ:OVTI) to a rating of Neutral on Friday from Outperform. The brokerage had, however, retained its price objective of $27. This meant that there was no upside rewards possibility and only downside risks were possible with the Friday’s closing price of $27.26.
The re-rating had become necessary for the brokerage because the company had indicated that it had received an unsolicited buyout offer from China-based Hua Capital Management Ltd. and its group for $29 a share in cash. The investment group included a fully-owned limited liability company Shanghai Pudong Science and Technology Investment Co. Ltd. that was created directly under Pudong New Area Government of Shanghai. The company had merely disclosed that its board was reviewing and evaluating the proposal of HCM and that no decision was taken.
Surge In Share Price
OmniVision Technologies, Inc. (NASDAQ:OVTI)’s stock price surged 15% on Thursday after the company had indicated that it was served with an unsolicited offer. As a result, 11.26 million shares were changed hands on Thursday compared to the three-month average volume of 3.3 million shares.
Though OmniVision preferred not to comment on the offer immediately, the standard response of any company involved in receiving unsolicited buyout offer was that the offer price fell short of its potentials. It meant that the suitor might lift its offer price.
Needham Lifts Price Tag
Financial advisor Needham had followed the company’s announcement to reiterate a fair value rating on OmniVision Technologies, Inc. (NASDAQ:OVTI)’s shares on Thursday. However, a blogger indicated that Needham had increased its price objective on OmniVision Technologies shares to $32 from $27.
Obviously, the brokerage might have thought that there could be a sweetening of offer from $29 a share.
