Citigroup has upgraded Tat Hong Holdings (T03.SG) to Buy from Sell, citing pick-up in infrastructure spending, crane company’s continued progress in its key China, Australia markets, according to Dow Jones.

Citi adds risk-reward ratio has turned favourable after 12.4% fall in price year to date. Lifts target to $1.15 from $1.10, based on 11.5x P/E vs 11.0x previously. Says engineering work in progress currently at unprecedented levels in Australia, with commencement of several large infrastructure projects expected to drive crane demand back to pre-crisis levels.

“In addition, equipment sales — which collapsed in (fiscal) FY10 — show promising signs of recovery on the back of easing credit markets and an improving economic outlook,” says Citi.

Research house says Tat Hong’s aim of doubling revenue from China to 15%-20% within threeyears achievable given country’s ambitious rail expansion, investment in energy sector.

Shares +0.5% at $0.925.