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: A123 Systems (Nasdaq: AONE) popped 17% in intraday trading today after Morgan Stanley upgraded the stock to overweight from equal weight and issued a $9 price target.

So what: Morgan Stanley cited three catalysts it believes could drive the stock higher in the next six months: revenue could increase markedly in 2011 as several customers move to volume purchases, higher utilization could boost margins, and the company could announce details of a production contract with a major U.S. carmaker for 2013.   

Now what: Last week the stock was downgraded by Pacific Crest Securities and lost 22%. Consensus forecasts are calling for losses through at least 2012, and Pacific Crest believes losses will force the company to raise additional money through a secondary offering by early 2013. With no profits in sight for at least a couple of years, the stock is likely to continue being driven by electric vehicle sentiment and revenue-related news.

Interested in more info on A123 Systems? Add it to your watchlist by clicking here.

Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.