WR Hambrecht predicts 1.2% growth in 2007 and 9.8% growth in 2008.
WR Hambrecht & Co. has initiated coverage of Zoran Corp. (Nasdaq: ZRAN) with a “Hold” recommendation at a target price of $16.50.
WR Hambrecht analysts Daniel Amir and Dunham Winoto write, “While we believe in the long-term prospects for the company in the digital television (DTV) and mobile space, we expect revenue growth in 2007 to be rather modest at 1.2% before growing more strongly at 9.8% in 2008.
As a result, we recommend that investors stay on the sidelines until we see the following: improvement in the DVD business… penetration into the DTV market in tier-2 OEMs with significant design wins, business ramp-up… and resolution of the stock options probe.”
Zoran recently announced that it had completed its stock options investigation and found no illegal acts by management, but the company would nevertheless have to report a $12-15 million expense and restate its financial reports for previous years. The probe has also prevented the company from publishing full financial reports since the first quarter of 2006.
Published by Globes [online], Israel business news - www.globes.co.il - on March 20, 2007
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