Needham analyst Alex Henderson upgraded NeoPhotonics to Buy from Hold with an $11 price target. The analyst downgraded the shares on risks associated with the Huawei Export Administration Regulations but he says now that those risks have not been born out. NeoPhotonics management reacted to the risk by sharply improving the cost structure and efficiency of the company, Henderson tells investors in a research note. His upgrade to Buy reflects an improving demand environment in China, "firmer-than-expected" demand out of Western accounts, improved visibility in Q1, and "strong" recent new product introductions.