Piper Jaffray & Co. upgrades Wonder Auto Technology (Nasdaq: WATG) from Neutral to Overweight. Price target increased to $16.

Piper analyst says, "We believe the acceleration in auto sales in China over the past 3 months – coupled with lagging production levels – will drive improved fundamental results for WATG over the next 2-4 quarters. WATG's focus on parts for small-engine vehicles positions the company particularly well as government incentives are driving demand for these autos. Looking ahead to 2010 and beyond, we believe Wonder Auto Technology is positioning itself to capitalize on the emergence of electric vehicles in China. This market potential could be transformational to WATG and its valuation. We are raising our FY09 estimates from $0.82 to $0.84 and maintaining our Street-high FY10 EPS estimate of $1.04."

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Wonder Auto Technology, Inc., through its subsidiaries, engages in the business of designing, developing, manufacturing, and selling automotive electrical parts in China.