Piper Jaffray Initiates Coverage On Sun Hydraulics

Piper Jaffray is out with a research report on Sun Hydraulics Corp. SNHY and is initiating coverage on the name with a Neutral rating and a $33 price target on shares. In a note to clients, Piper Jaffray writes, "We are initiating coverage on Sun Hydraulics at Neutral with a $33 price target. While Sun's portfolio of premium hydraulic solutions positions them for a variety of industrial applications, risk and reward prospects do appear balanced at the stock's current valuation as shares currently trade at the high end of historical multiples. We are initiating at Neutral with a $33 PT based on 19x our FY12 $1.72 estimate, and would likely become more constructive on a pullback to $25 given current end market momentum and earnings growth prospects." Shares of SNHY gained 20 cents yesterday to close at $28.71.