Brightpoint Rallies As Citi Upgrades To Buy

Brightpoint (CELL) shares have spiked higher this morning after Citigroup analyst Jim Suva lifted his rating on the handset distributor to Buy from Hold, while increasing his price target on the stock to $9 from $6.50. CELL closed yesterday at $6.34.

“With increased conviction in the global handset unit trough in 2009, followed by positive growth ahead, we believe CELL will be awarded [a] higher multiple going forward given its leverage to global industry volumes through its leading position in handset distribution, increasing exposure/focus on smartp[hones and higher margin logistics and potential leverage to recovery in Europe.”

Suva upped his 2009 EPS estimate to 45 cents from 38 cents. For 2010, he maintains his estimate of 64 cents a share. For 2011, he goes to 83 cents, down from 86 cents.

CELL today is up 49 cents, or 7.7%, to $6.89.