Vimicro (NASDAQ-VIMC) Revise Target Price

Thu, 2012-11-01

application/pdf iconvimc-update-report-2012-11-01.pdf

Title: Vimicro (NASDAQ-VIMC) Revise target price upward to US$1.60 with 28.0% upside; maintaining NEUTRAL rating

Synopsis: Vimicro announced the return of Mr. Zhenyu Tang in October, who replaced Mr. Peidong Wu as the Chief Financial Officer. Mr. Zhenyu Tang has served as the Chief Financial Officer of Vimicro from July 2008 to November 2010. Following the 21.4% price appreciation since our last report in August, Vimicro is currently trading just above our old target price of US$1.20 at US$1.25. We are adjusting our target price to reflect the recent price movements and improved sentiments toward Vimicro. We are raising our target price to US$1.60 from the initial US$1.20. We are maintaining our initial Neutral rating and will continue to monitor the company’s Q3-2012 results.

Report length: 3 pages (excluding legal disclaimer)

Miller Chu
Peter Fang, CFA