SAN FRANCISCO, Dec. 21, 2010 /PRNewswire/ -- Vista Partners announced today that it has updated coverage on Lihua International, Inc. (Nasdaq: LIWA) and raised its twelve month target price from $18.20 to $20. Ross Silver, Principal Analyst at Vista Partners, stated, "Lihua's third quarter results exceeded our estimates and it is our belief that Lihua remains highly undervalued despite the share price increasing 30% since our initiation of coverage on October 7th. Lihua management confirmed recently that their plans are to double capacity in 2011 in order to meet steadfast customer demand; further, the demand for copper in China remains strong, which in turn is aiding copper prices to trade near all-time highs." Mr. Silver continued, "It is our belief that Lihua's current valuation has been impacted by concerns related to accounting for all small cap Chinese stocks. It is our understanding that Lihua has demonstrated numerous times that their accounting is completely transparent and that they publish all financial statements on their website, including financial statements filed with the local Chinese authorities. In addition, Lihua is audited by a global top ten accounting firm, Crowe Horwath." Mr. Silver goes on to say, "We believe a considerable short term price appreciation opportunity could occur if investors that are currently short Lihua's stock are forced to cover their positions by buying those positions back." Lastly Mr. Silver states, "As Lihua continues to execute and the overall accounting fears in the small cap Chinese space dissipate, we believe Lihua's share price could move considerably higher to more appropriately reflect their current value and future growth prospects." To download a FREE copy of the Lihua International, Inc. research report, please visit www.vistapglobal.com and click download research to gain access to the report.
About Vista Partners:
Vista Partners LLC was founded in 2005 and has offices in California and one in Oregon. We are a Registered Investment Advisor in the States of California and Oregon. Our professional staff has backgrounds in finance, corporate communications and investment banking.
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SOURCE Vista Partners