UPDATE: Oppenheimer Upgrades RRSat Global Communications Network Ltd. to Outperform, Names $10 PT on Growth Story Confidence

In a report published Thursday, Oppenheimer analyst Andrew Uerkwitz upgraded the rating on RRSat Global Communications Network Ltd. RRST from Perform to Outperform, and named a $10.00 price target. In the report, Oppenheimer noted, “We upgrade RRST to Outperform from Perform as we believe management's vision of becoming a growth company is starting to be realized. With last year's acquisitions, SM2 Sports and Media Solutions (to enter live media distribution), and this week's acquisition of JCA (European content management), the company has expanded into new segments that are higher margin yet complimentary to its core business of distribution. Additionally, it broadens RRST's footprint to become a truly worldwide company. We introduce a $10 price target based on 1.1x EV/sales which is within its historical range (0.4-2x) and an expanding multiple is warranted, in our view, given likely growth acceleration and margin expansion.” RRSat Global Communications Network Ltd. closed on Wednesday at $8.06.