UPDATE: Imperial Capital Upgrades FLIR Systems

Imperial Capital upgraded FLIR Systems, Inc. FLIR from In-Line to Outperform and maintained its price target of $40 in a report issued Monday.

Analysts Jeff Kessler and Saliq Khan believed "that the combination of expectations for new products in FY14 turning into new revenues in FY15, and the strong cash flow that creates a potential shareholder friendly “floor” under the stock, are the positives for the share price."

The company "generated revenue of $1.5bn, adjusted net income of $156mn and had $565mn in cash, and total debt of $369mn, during the latest 12 months (LTM) ended 9/30/14."

"This 35-year old company is a global leader in thousands of infrared detector cores and thermography equipment markets and also provides lower priced products from automotive, to boating, to commercial security, and to inspectors and the smart grid,” according to Kessler, and is not just a supplier of cameras in Bell Helicopters.

The price target is based on a "12.6x EV/EBITDA multiple of our FY15 EBITDA estimate, with an enterprise value of $5.5bn."

FLIR Systems, Inc. recently traded at $32.24, up 0.62 percent.