Zoran shares up, analyst sees boost in new gadgets

Zoran shares rise, analyst predicts boost from wave of digital TVs, cameras, DVD and Blu-ray

• On 2:32 pm EDT, Monday September 14, 2009

SEATTLE (AP) -- Shares of chip maker Zoran Corp. jumped Monday after an analyst said Wall Street has not taken into account how upcoming digital TV, digital camera and DVD player product launches will boost Zoran's business.

The Sunnyvale, Calif.-based chip maker's stock rose 50 cents, or 4.7 percent, to $11.20 in afternoon trading.

Needham analyst N. Quinn Bolton wrote in a note to investors Monday that he expects Zoran's digital TV revenue to rise as its components reach the European market.

Bolton also wrote that Zoran's digital camera business won contracts with multiple Japanese and Taiwanese camera manufacturers that will help the company increase its already large market share in 2010.

The analyst also noted that Zoran has regained market share in DVD players in China, and that its high-definition Blu-ray player chips are expected in 2010.

The analyst raised his rating on the company to "Buy" from "Hold" and raised his earnings estimate for 2010 to 50 cents per share from 20 cents per share on an adjusted basis.

On average, analysts expect Zoran to earn 16 cents per share in 2010, according to a Thomson Reuters survey.