UPDATE: JP Morgan Upgrades Varian Medical Systems to Overweight

JP Morgan has published a research report today on Varian Medical Systems

and has upgraded the company from Neutral to Overweight. In the report, JP Morgan writes, "During the past year, the debate over Varian Medical (

) has been about upside from the TrueBeam product cycle, continued execution, capital deployment, and secular industry tailwinds vs. fears over U.S. reimbursement and potential macroeconomic effects on capex, particularly in Europe. While many of these issues will remain in 2012, an important and underappreciated recent development – the selective exit of Siemens from the radiation oncology market – dramatically improves the risk/reward, as VAR (and others) should benefit from a global industry that is moving from four to three competitors." JP Morgan has also raised the price target from $66 to $75 on Varian Medical Systems, which is currently trading up $2.51 from Friday's $67.13 closing price.