DMG upgrades Hi-P (H17.SG) to Buy from Neutral, lifts target price to $0.97 from $0.595 after increasing FY10-11 earnings forecasts by 19.5%-25.0% to assume stronger business, says Dow Jones.

DMG notes contract electronics manufacturer counts Research In Motion, Apple as key clients. Says 2Q10 earnings of $12.4 million, vs $14.2 million loss in 1Q10, above market expectations.

“We anticipate that this bullish momentum would pick up steam further in 2H with Hi-P ramping up its utilisation rate as more orders for the manufacturing of BlackBerry smartphones and Apple iPads flow in,” says DMG.

Shares +2.6% at $0.80.