Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: FARO Technologies (Nasdaq: FARO) popped 10% in intraday trading today after broker/dealer Robert W. Baird upgraded the stock from "neutral" to "outperform."

So what: Baird also raised its target price on FARO to $48 from $40, citing first-quarter order strength. New order bookings in the first quarter grew 41% year over year, while revenue grew 24%. In the first-quarter earnings release, management expressed optimism regarding 2011, including expectations that good operating leverage will continue.

Now what: Wednesday after the close, FARO reported first-quarter EPS grew 54% year over year but was a penny shy of the $0.21 consensus estimate. On Thursday, the stock closed down 4% after falling close to 10% in intraday trading. Baird's upgrade appears to be turning investor focus from the earnings disappointment to new order growth and perhaps strong EPS growth and management confidence in the outlook.  

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