UPDATE - UBS Upgrades HiSoft Technology (HSFT) to Buy on Fundamentals/Valuation

UPDATE - UBS upgrades HiSoft Technology (Nasdaq: HSFT) from Neutral to Buy. PT $21.

UBS analyst said, "We upgrading HSFT for the following reasons: 1) HSFT fundamentals are still intact with revenue growth of 35%+ for 2011E); 2) Lowest DSO’s in the group due to China domestic market exposure; 3) Secular growth story of the Chinese IT services market is compelling and we believe that the industry will grow at an attractive mid-20%+ range over the next few years; 4) Attractive valuation (18x/14x C11/C12E adj. EPS) with revenues growing at
3.6%/30% in C11e/C12e."

"Longer term-thesis intact - We remain positive on HSFT’s long-term prospects as the company is likely to benefit from secular growth of the Chinese IT services market and the company has an attractive value proposition and sound business model. While there may be some near-term volatility in the short-term due to LFT, we believe that this is a very attractive point for investors interested in the Chinese IT services space."

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Freedom Broker Upgrades John B. Sanfilippo & Son, Inc. (JBSS) to Buy
• JPMorgan Upgrades Michelin (ML:FP) (MGDDY) to Overweight
• Freedom Broker Upgrades Taylor Devices, Inc. (TAYD) to Buy