UPDATE: Piper Jaffray Raises PT on Telvent to $40 (TLVT)

Piper Jaffray is out with its report today on Telvent TLVT, raising its PT from $39 to $40. In a note to clients, Piper Jaffray writes, "We are lifting our USD estimates to reflect a more favorable exchange rate (local currency estimates remain largely unchanged.) We believe Telvent is well-positioned across multiple growth platforms over the next 12-24 months. Of the growth initiatives, we remain most optimistic about growth drivers in smart grid DMS, analytic systems for oil & gas transmission, and a migration of existing systems and service offerings to SaaS, which presents a 2x-3x margin lift opportunity. We believe the momentum behind these growth drivers could provide meaningful upside to our FY12 estimate of $2.22. Our price target moves to $40 based on the upward revision to FY12 EPS estimates." Piper Jaffray maintains Overweight on TLVT. Shares of TLVT closed Monday at $30.74, down 1.57% from Friday's close.