First Albany upgraded Powerwave Technologies (PWAV

) to buy from neutral, citing lower than expected first quarter results.

Analyst Frank Marsala says the company gave very strong second quarter guidance, leading him to think first quarter weakness is a one-quarter anomaly. He says that $193.1 million first quarter revenue were at the low end of the company's target range, and 4 cents non-GAAP earnings per share (EPS) were below his 7 cents estiamte. He notes that the company guided to second quarter revenue of $240 million to $260 million, while non-GAAP EPS of 11 cents to 15 cents came out vs. his former estimates of $227.1 million and 12 cents EPS. Along with the upgrade, he raises his second quarter revenue estimate to $245 million and EPS to 14 cents. He raised his 2006 revenue to $1.01 billion from $987.8 million and EPS to 60 cents from 59 cents. He sees 87 cents 2007 EPS on $1.19 billion revenue. He has a $14 stock price target.