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: Shares of network data traffic technologist Gigamon (NYSE:GIMO) climbed 10% on Friday after its Q1 results prompted a buy to strong buy upgrade from Needham & Company.

So what: The stock was crushed earlier this month after management warned about its current quarter, but better-than-expected results (Q1 revenue still managed to grow 23% year over year), coupled with the vote of confidence from Needham, are easing some of those investor worries. In fact, Needham analyst Alex Henderson planted a price target of $34 on the stock, representing a whopping 110% worth of upside to yesterday's close.

Now what: According to Needham, Gigamon's risk/reward trade-off is particularly attractive at this point. "We expect 20%+ growth and sharply expanding margins," said Henderson. "We believe GIMO is a leader in a rapidly growing sector that is becoming increasingly strategic. We think the stock is oversold, and we are making it one of only three stocks in our coverage rated Strong Buy." When you couple that upbeat outlook with Gigamon's still-beaten down stock price and rock-solid financial position, it's easy to understand Needham's bullishness. 

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.