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Hot Stocks: Crocs, Drug Stocks Among Friday's Bright Spots

Leisurewear retailer Crocs saw shares surge after the company posted strong quarterly results and lifted full-year guidance. The Niwot, Colo.-based company attributed the windfall resuluts to strong overseas sales and said second-quarter earnings more than tripled from the year-ago period to 58 cents a share. Profit easily topped the Wall Street consensus estimate of 44 cents.

Crocs raised its full-year earnings forecast to a range of $1.89 to $1.93 a share, compared with analysts' expectations for earnings of $1.53 a share. Wedbush Morgan lifted the target price on the stock to $71 from $54.

Targacept jumped 14% after the drug development firm forged a deal with British drug giant GlaxoSmithKline potentially worth up to $1.5 billion. The companies will co-develop technology intended to harness the positive effects of nicotine for the painkiller market.

CIBC World Markets raised the price target on Targacept shares to $16 from $12. "We believe this collaboration is a clear win for Targacept, as it validates Targacept's platform technology with strong deal terms and a solid partner," said analyst Bret Holley, in a client note.

Electronics manufacturing services firm Flextronics International rose after the company posted strong quarterly results. Bear Stearns analyst Kevin Kessel  lifted his price target on "outperform"-rated Flextronics to $16 from $15 and said the stock is "our most compelling large-cap investment idea."

"Flextronics' quarter and guidance were both above expectations and very impressive," said Kessel. "FLEX is hitting on all cylinders and we don't expect its acquisition of Solectron to slow it down."

The analyst also said there was upside potential of 43% to the new $16 price target.

Shares of Kyphon rose after medical device maker Medtronic said on Friday it would acquire the spinal device maker for $3.9 billion in cash, or $71 a share, representing a 32% premium. The deal is expected to close in the first quarter of 2008.

Peter Kang is a markets writer at CNBC.com and can be reached at peter.kang@nbcuni.com.