DBS Vickers has upgraded Hi-P International (H17.SG) to Buy from Fully Valued, lifts target price to $0.72 from $0.49, based on 9x FY11 P/E, after increasing FY10-11 earnings forecasts by 9%-6%, according to Dow Jones.

Changes reflect company’s improved 2Q10 revenue, profit guidance. “Hi-P is finally seeing strong momentum of new launches for two key customers, Research In Motion and Apple, whose products such as smartphones and tablet computers are among the most coveted consumer gadgets today,” says DBS Vickers.

The brokerage cites increased demand, better capacity utilisation and cost controls, Hi-P expects 2Q10 revenue to be comparable to 2Q09’s $177.6 million vs May guidance for lower sales; still expects profit to be lower than 2Q09’s $16.0 million but better than initial forecast to break even.

Stock +9.8% at $0.56.