UBS Financial upgraded Vishay Intertechnology (VSH) to buy from neutral.
Analyst Patrick Parr says he's upgrading on a number of factors, including attractive valuation. He thinks the stock offers a 22% potential upside, especially since it recently sold off on the back of the company's new $450 million convertible note offering. He also is confident that Vishay can continue to see significant operating leverage through aggressive cost-cutting initiatives, and organic acquisitive revenue growth.
Furthermore, Parr thinks Vishay's balanced product portfolio and end-market exposure offers amore diversified play on the components sector. He maintains his 35 cents 2003 earnings per share and 75 cents 2004 earnings per share estimates, and has a $16 target.