UPDATE: Stifel Nicolaus Increases Target to $22 on HiSoft Technology International

Stifel Nicolaus raises its price target on Buy-rated HiSoft Technology International

to $22, from $20, on strong business fundamentals. Stifel Nicolaus notes, "We remain very positive on the risk/reward associated with this name and continue to believe HSFT's differentiation relative to its Chinese peers will become more visible as the year progresses. HSFT is differentiated in that it was conceived as an export business; its exposure to the domestic market is small (~20%) and it is deliberately avoiding customer concentration. Furthermore, its employee mix is more concentrated in lower cost Tier 2 cities, which mitigates domestic wage pressure." HSFT closed at $12.20 a share yesterday.