UPDATE: J.P. Morgan Initiates Coverage on Caesarstone

According to a research report published this morning, J.P. Morgan has initiated Caesarstone

with an Overweight rating and $15.50 PT. In the report, J.P. Morgan said, "A global leader in the rapidly expanding quartz countertop market, we believe the company is well positioned to benefit from the category's increased penetration over the next several years, given its #1 or #2 share positions in its core markets and #2 position globally. Hence, we estimate strong revenue growth over the next two years through multiple avenues, and view its robust gross and operating margins as at least sustainable in the near to medium term. At only 10.0x and 5.6x our 2012E EPS and EBITDA, respectively, we believe CSTE's valuation is highly attractive, particularly given its above average financial metrics." Caesarstone closed yesterday at $12.38.