Hi-P jumps as earnings rebound eyed

Stock Name: Hi-P
Company Name: HI-P INTERNATIONAL LIMITED

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.95

Shares of Singapore’s Hi-P International rose as much as 6.5% after brokerage DBS Vickers upgraded the stock, citing increased market share and an expected earnings recovery this year, reported Reuters.

By 10:34 a.m., shares in Hi-P, a supplier of electronic parts for companies including Apple and Blackberry maker Research In Motion, were up 5.2% at $0.81, the highest since August. Trading volume of more than 1.25 million shares was 2.3 times the average full-day volume traded over the last 30 days.

DBS Vickers upgraded the stock to buy from fully valued and raised its target price to $0.95 from $0.43.

DBS Vickers said with net cash of $201 million at the end of the third quarter of 2011, Hi-P can comfortably maintain a 40% dividend payout, translating to a yield of 3-5%.