• Citigroup upgraded shares of Akamai (NASDAQ: AKAM) to Buy from Hold following the company's Q4 results as they believe fundamentals are stabilizing. The firm raised their target price to $22 from $12.
  
• Baird upgraded Theravance (NASDAQ: THRX) to Outperform from Neutral. The firm said the company looks poised to realize the two-product success necessary to drive profitability, and Horizon will likely play a role in succeeding $7B+ Advair. Note that last night Theravance/Glaxo (GSK) reported positive results for Horizon.
  
• RBC Capital said Aeterna Zentaris (NASDAQ: AEZS) is on the cusp of a Cetrorelix deal and has turned more positive on shares. Shares were upgraded to Outperform from Sector Perform.
  
• Marvell Tech (NASDAQ: MRVL) was upgraded to Buy from Neutral at Goldman and added to the firm's Conviction Buy List.
  
• Sangamo BioSciences (NASDAQ: SGMO) was raised to Buy from Neutral at Merriman.
  
• Arthur J. Gallagher (NYSE: AJG) was upgraded at Piper Jaffray to Buy from Neutral.

It's a high-tech world and precision counts, in optically coating your sunglasses as much as in etching your semiconductors. A leading manufacturer of the control instrumentation used in both processes is headquartered in Fort Collins, Colorado.

Advanced Energy Industries (NASDAQ:AEIS) provides power systems, gas/liquid flow-management systems and thermal instruments used in plasma thin-film manufacturing processes. Its components and subsystems help drive chemical reactions for the deposition and etching processes used in making semiconductors, data storage devices,and flat-panel displays. Its systems also apply coatings to windows, eyeglasses and solar panels. Advanced Energy operates through regional centers in North America, Asia and Europe.

The firm pleased investors last week, when it reported Q4 EPS of 35 cents and revenues of $104.50 million. Analysts had been expecting 34 cents and $103.6 million. Management also guided Q1 revenues to $102-$106 million, versus consensus of $99.66 million. The CEO was particularly positive about Advanced Energy's growth capacity in non-semiconductor markets, citing strong company sales trends in the solar and architectural glass arenas. The news popped the share price above 30-day/50-day moving average resistance, where it is now forming a bullish flag consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokerages recommend the issue with two "strong buys", one "buy", seven "holds" and one "sell". Analysts expect a twenty percent average annual growth rate, over the next five years. The AEIS P/E ratio (9.91), PEG ratio (0.49), Price to Sales ratio (2.09), Price to Book ratio (2.41), Sales Growth rate (30.01%), EPS Growth rate (218.18%), Net Profit Margin (21.23%), Return on Assets (24.15%), Return on Investment (28.08%) and Return on Equity (28.44%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 77 percent of the outstanding shares. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $11.50 and $20.90. A stop-loss of $16.70 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.