UPDATE: Oppenheimer Upgrades Synutra International to Outperform, Names $10 PT Following Solid 2Q14 Revenue Report

In a report published Wednesday, Oppenheimer analyst Ingrid Yin upgraded the rating on

from Perform to Outperform, and named a $10.00 price target. In the report, Oppenheimer noted, “SYUT reported 2Q14 revenue of $88.6M, beating OPCO estimate of $80.6M, representing 34.0% yoy growth. GAAP diluted EPADS of $0.11 beat OPCO estimate of $0.05. Margins continued to expand due to product mix and successful distribution channel management, and we expect its business to recover further going forward. SYUT's market share is also stabilizing. We expect SYUT's specialty products and ramp-up of its French facility in FY16 to help gain share in future. Valuation is also attractive, especially compared with peers. We upgrade SYUT from Perform to Outperform with a $10 price target, implying 15x our FY16 EPADS estimate of $0.69 and 40% upside.” Synutra International closed on Tuesday at $7.17.