Shares of diagnostics company Celera ( CRA) jumped Friday after the stock was upgraded to outperform from market perform by analysts at Piper Jaffray.

"Since emerging out from under the genomics business, Celera has established itself as one of the better positioned molecular diagnostics companies, in our opinion," wrote analyst William Quirk in a research report Friday.

Despite patent concerns and a recent injunction against the company's hepatitis C products, Celera's alliance with health care giant Abbott ( ABT) "is poised to begin commercializing a plethora of new and novel tests," including those for cirrhosis risk and breast cancer prognosis, Quirk says.

The analyst expects the company to beat its revenue expectations for the full year 2007. He sees revenue growth of 2.1% to $47.2 million compared with its guidance of $40 million to $45 million.

Quirk raised his price target for Celera's shares to $16 from $14. The stock rose $1.11, or 8%, to $14.92.

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