UPDATE: Piper Jaffray Initiates Fuel System Solutions at Overweight on Natural Gas Breakout

Piper Jaffray initiated coverage on Fuel System Solutions FSYS with an Overweight rating and a $24 price target. Piper Jaffray noted, "We believe 2013/2014 will represent a step change in the transition toward natural gas as a fuel for light commercial fleets, and FSYS is the cheapest way to invest in this theme. The company is not without its drawbacks: aftermarket ASP pressure and lumpy OEM orders make modeling a challenge, and 35%+ Europe exposure could also be a headwind. But we believe major North American OEM platforms - which are slated to ramp in Q4 - will drive estimates higher than consensus in 2013-2014 as light duty fleets steadily transition to CNG fuel." Fuel System Solutions closed at $18.30 on Monday.