What happened Shares of NeoPhotonics (NYSE: NPTN) have jumped today, up by 8% as of 11:30 a.m. EDT, after getting an upgrade from Wall Street. B. Riley FBR boosted its rating on NeoPhotonics stock to buy in the wake of the the company reaffirming its outlook. So what Yesterday, NeoPhotonics said it expects to hit its guidance for the third quarter despite increased restrictions on Huawei, which is the optical networking technology company's biggest customer, accounting for 52% of revenue in Q2. Guidance for the third quarter issued earlier this month calls for revenue of $97 million to $105 million, and NeoPhotonics currently sees about $40 million coming from Huawei. The company also said that revenue from other customers is expected to grow 40% to 50% over the next year. Image source: Getty Images. B. Riley FBR analyst Dave Kang kept his price target on the stock at $9 but upgraded the overall rating due to "Huawei being de-risked while demand from non-Huawei customers remains strong, which should result in diversified customer base and improved quality of earnings." Now what Kang believes that demand for 400G offerings from other customers could help offset some of the lost business from Huawei within the next year. However, the analyst still lowered near-term estimates for NeoPhotonics' revenue and earnings in 2020 and 2021. "In particular, our highest speed over distance products for 400G and above applications continue to gain traction with leading network equipment manufacturers and are expected to represent more than 20% of total revenue in 2020, after only two years in the market," CEO Tim Jenks said in yesterday's business update. 10 stocks we like better than NeoPhotonicsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and NeoPhotonics wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source