Piper Jaffray Upgrading Hollysys Automation (HOLI

Piper Jaffray is out with a research report on Hollysys Automation HOLI and it is upgrading shares to Overweight with an $11 price target on shares. In the note, Piper Jaffray writes, "We are upgrading HOLI to Overweight, citing a proprietary model that projects a ramp in China's high speed rail (HSR) spending. The Ministry of Railways (MoR) is slowly resuming its investments in HSR projects, and we believe the new HSR completion schedule will create a positive tailwind for equipment suppliers like HOLI. We are now less concerned with the quality of HOLI's HSR-related earnings and backlog, and have a higher degree of confidence in projecting growth. Given this, we have increased our CY12 EPS estimates and our price target from $6.60 to $11 (based on 10x CY12 EPS)." Shares of HOLI lost 40 cents yesterday to close at $8.56.