11:20 AM -- There are some things to like about Oplink Communications Inc. (Nasdaq: OPLK)'s recent results, but that wasn't enough to make Morgan Keegan & Company Inc. analyst Paul Bonenfant change his Market Perform rating on the company's shares.

Bonenfant writes that Huawei is now Oplink's top customer, with 23 percent of sales, and he expects sales to Huawei to "decline as inventory is bled down, yet stabilize exiting CY09 as China optical builds continue in support of wireless (3G) infrastructure."

Why not buy in big with all that Huawei activity as a catalyst? Bonenfant writes that he hesitates to chase the stock because he feels it already "had upside built-in ahead of the report" and now the valuation is more reasonable.

Oplink shares were up $1.59 (12.49%) to $14.31 in late morning trading on Friday, as investors ignore the analyst with wild abandon.

— Phil Harvey, Editor-in-Chief, Light Reading