UPDATE: Stifel Nicolaus Raises PT to $23 on Newport

Stifel Nicolaus increases its price target on Buy-rated Newport (NASDAQ: NEWP) to $23, up $2, on solid 2012 outlook.

Stifel Nicolaus says, "Newport is experiencing improving demand and order flow quarter to date and anticipates the microelectronics downturn will be shorter and less severe than prior cycles, providing a better than consensus revenue outlook for both 1Q12 and 2012, with the expectation Newport will deliver sequential sales and profit growth in each quarter in 2012. The improved outlook and tone appears to be aided by 12-month backlog of $168.7 million, a record level, which is not inclusive of a $36.7 million order for ultrafast lasers received in 1Q12."

NEWP closed at $18.54 a share on Wednesday.