UBS Warburg upgraded Flextronics (FLEX

) to buy from neutral, and raised the $13 target to $18.

Analyst Patrick Parr says he thinks the recent pull-back and strong fundamental momentum heading into a seasonally strong second half provides an attractive entry point. He expects the contract manufacturer to report second-quarter results toward the high end of its guided range, and provide a positive outlook.

Parr sees 36 cents fiscal 2004 (March) earnings per share; he notes his 65 cents fiscal 2005 earnings per share estimate is currently among the highest on the Street. With Flextronic's original design manufacturer initiatives off to a strong start, an earlier-than-expected turn in its PCB (printed-circuit-board) fabrication business, and substantial operating leverage in its other operations, Parr says he thinks leverage and better mix trends aren't fully reflected in Flextronic's consensus estimates.