Jefferies Upgrading Kulicke & Soffa

Jefferies & Co. is out with a research report on Kulicke & Soffa

and is upgrading it to Buy with a $12 price target, up from $6. In a note to clients, Jefferies & Co. writes, "We believe the transition to copper bonding is a multi-year secular theme (2-3 years) within which KLIC has established a sizeable lead on rivals. OSAT customers are fast reaching c.30% of sales (

) in copper given their steep adoption ramp (helps their GM% vs. gold spot price) and we expect this to continue to hold up the order book into 2H11 and much of 2012. We are raising KLIC to a Buy and our P/E-based PT to $12." Shares of KLIC closed at $9.70 yesterday.