Axsys Technologies (AXYS: sentiment, chart, options) got a brokerage boost today when Morgan Keegan raised its rating on the stock from "market perform" to "outperform." "We are optimistic that the company will be able to achieve at least our current projections due to its low exposure to the commercial market and strong backlog of government business," said analyst Brian Ruttenbur in a note to clients.

Ruttenbur also cited a recent pullback in AXYS, which is down roughly 46% from its August peak near the 80 level. The analyst asserted that he sees no catalyst for the decline, and said the shares look attractively priced at their current valuation.

This afternoon, AXYS is up about 12%. The stock is hovering just above the 48 level, which has provided support on several occasions in 2008. Some of today's gains could be attributable to short-covering support; as of the latest reporting period, a healthy 11.5% of the equity's available float was dedicated to short interest.