UPDATE: Citi Raises Price Target on Varian Medical Systems to $71

According to Citi, Varian Medical Systems (NYSE: VAR) price target is increased to $71.

Citi said that the Citi healthcare team recently published its 11th annual non-profit hospital capex survey which indicates a 13% increase in capex spending for 2012 (vs. a 6% increase noted in the 2010 survey). “For several weeks, we have been indicating that the risk/reward trade-off had been favoring the “reward” side, but with the strong move in the stock, we now believe the trade off is more balanced and as such we maintain our Neutral rating.”

Varian Medical Systems closed on Friday at $67.13.