UPDATE: Morgan Keegan Raises Target to $7 on NeoPhotonics

Morgan Keegan reiterates its Outperform rating on NeoPhotonics (NYSE: NPTN) and raises its price target by 75 cents to $7 on positive Q4 results and a good start to 2012.

Morgan Keegan says, "We maintain our Outperform rating on NeoPhotonics and imagine the stock trades higher given the strong finish to the year and an accelerated path to profitability. In addition, the Santur acquisition positions NeoPhotonics to benefit from a multi-year 40/100G product cycle."

NPTN closed a $5.73 a share on Tuesday.