J.P. Morgan Expects TNAV To Be In-Line

In a report released this morning, J.P. Morgan said that it expects TeleNav, Inc. (NASDAQ: TNAV) to report in-line results, providing more granularity regarding Sprint's (NYSE: S) fixed fee payments, which will make modeling easier.

“However, TNAV is still in transition, and we expect the difficult period with declining ARPU to continue at least through year-end,” J.P. Morgan writes. “While we think TNAV is attractively valued, competitive threats (especially Android handsets) still weigh on sentiment, the business model remains uncertain, and the customer concentration risk remains a concern. We are maintaining our December 2011 price target of $7.50 and our Neutral rating.”

TeleNav closed Monday at $7.34.