NEW YORK (AP) -- Shares of Syntax-Brillian Corp. shot up in premarket trading Tuesday after a Robert W. Baird analyst upgraded the struggling high-definition TV maker, saying a round of work force reductions and a new partnership with Compal Electronics will add value to the stock

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Tristan Gerra raised the Tempe, Ariz., company to "Outperform" from "Neutral" in a client note Monday. He said the company's announcement Friday that it would lay off 20 percent of its employees will reduce costs and simplify its business model.

Gerra also said the company's recently announced partnership with Compal to manufacture 300,000 of its Olevia LCD TVs streamlines its supplier network.

"We believe Syntax-Brillian's chances of bankruptcy are very slim and that the company will be able to refinance its debt," the analyst said. On Friday, the company said in a filing with the Securities and Exchange Commission that it will need to restate several financial reports, and said shareholders should no longer rely on previous filings.

Gerra cut his fiscal year outlook on the company to break-even, from a 21 cents per share profit, compared with an average forecast from analysts polled by Thomson Financial for a loss of 7 cents on the year. Gerra's forecast does not include stock-option expenses. He cut his price target on the stock to $3 from $4.

Shares of Syntax-Brillian gained 16 cents, or 15.1 percent, to $1.22 premarket, from their close at $1.06 in regular trading Monday.