UPDATE: BMO Capital Markets Upgrades Electronics for Imaging to Outperform

BMO Capital Markets raises its rating on Electronics for Imaging

to Outperform from Perform and increases its price target to $21 from $18 a share following a visit to the company's operations that reinforces confidence on growth. BMO Capital says, "We believe that EFII can generate 12% y/y revenue growth in CY12 and 6% y/y revenue growth in CY13. Based on our recent visits with major Japanese printer companies, we believe that high-end commercial printing will have modest growth in CY12. With that said, we have assumed that controller revenues decline by 1% y/y in CY12, and grow by 2% y/y in CY13. We believe that we have upside tension in our EPS, driven by revenues, margins, and buy back." EFII closed at $16.40 a share on Wednesday.