UPDATE: Raymond James Upgrades Harman International

In a note released Tuesday, Raymond James upgraded

from Outperform to Strong Buy and maintained a $125 price target, which is based on a 20x P/E multiple and reflects expectations for EPS to grow 20+ percent through 2016. Raymond James analyst Travis McCourt explained that the investment thesis on Harman is based primarily on the belief that increasing LTE connectivity, as well as sensors/cameras will drive "a meaningful increase" in infotainment attach rates. Moreover, McCourt points to a recent consumer survey that showed while only 16 percent of consumer currently have an infotainment system in their automobile, 39 percent expect to have one in their next one. In a look at Harman's main customer base McCourt appears optimistic and cited year-over-year March U.S. sales growth for BMW, Chrysler, and overall U.S. auto sales. In addition to this, McCourt pointed to global 1Q14 sales growth for Audi, as well as increased in car audio sales growth for both Mercedes and Lexus. In a final comment McCourt said, "Over the long run, we are less concerned with overall auto sales than infotainment attach rates, but it is reassuring to see the near-term results from some of Harman's largest customers." At last check Harman was trading up just over 3 percent at $103.14.