Piper Jaffray Overweight On Sun Hydraulics

Piper Jaffray is out with a research report on Sun Hydraulics Corp. SNHY and it has an Overweight rating and a $30 price target on shares. In a note to clients, Piper Jaffray writes, "We recently toured Sun's two Florida manufacturing facilities and come away very impressed with not only the strength of their engineering platform, but the pervasive culture which is a driving force for everything that they do, the combination of which we believe has them positioned for continued strong growth over the next several years. We also believe that in large part due to their engineering strength, that the risk of their product becoming commoditized is minimal and will likely allow them to remain focused on the higher priced segment of the market. Lastly, we reviewed their distributor network and leave with a better understanding of how that will be levered; especially to enter and expand their presence in China and South America." Shares of SNHY closed at $26.72 yesterday.