UPDATE: Benchmark Upgrades OSI Systems To Buy, $44 PT

Benchmark has upgraded OSI Systems (NASDAQ: OSIS) from Neutral to Buy and has raised the price target to $44.

In the report, Benchmark writes "We are upgrading OSIS to a BUY with a Price Target of $44 on improving visibility for both security and healthcare. We believe OSI has upside in FY12 from the new service model for cargo screening (Puerto Rico), comprehensive security product offerings to meet different screening needs (airport baggage, cargo/border security, passenger), and a recovery in the US patient monitoring market. Our Price Target is based on 10x our FY12 EV/EBITDA, above the sector average of 7x, based on its higher earnings growth prospects (20%+)."

OSI Systems closed yesterday at $37.03.