Piper Jaffray Reiterates Overweight on Wonder Auto Technology (WATG)

Piper Jaffray is out with its report this morning on Wonder Auto Technology WATG, reiterating Overweight. In its report sent to clients, Piper Jaffray writes, "WATG shares were halted yesterday in response to an announcement that 2008 & 2009 financials would need re-stating. After speaking with the CFO, we believe this is a non-issue. The scope of the restatement should be small (it deals with only 1 of WATG's 4 businesses), and does not impact guidance. Perhaps most significantly, this appears to be the final step toward obtaining an official Big 4 audit. With 16% short interest, WATG is the most heavily-shorted stock in our space; we believe a Big 4 audit will drive those hoping for a de-listing to cover their short positions. We reiterate our OW rating and see upside to $11.50." Shares of WATG closed Tuesday at $6.66, down 2.92% from Monday's close.