J.P. Morgan Maintains Underweight on Zebra Technologies (ZBRA)

J.P. Morgan is out with its report today on Zebra Technologies ZBRA, maintaining Underweight. In a note to clients, J.P. Morgan writes, "We expect ZBRA to report solid 4Q10 earnings. A positive earnings and guidance surprise from ScanSource, and improving bookings at NCR point to revenue growth in Zebra's end-markets. We think there's a replacement cycle under way in the retail vertical, which is leading to stronger sales. Rationale for the divestiture of Navis business is sound, in our view. We applaud the company's readiness to undo recent acquisitions and fine-tune strategic focus. Maintain Underweight based on valuation and relative return in the context of our coverage universe; we do not consider ZBRA a short idea." At the time of posting, shares of ZBRA were trading at $40.80, down 0.93% from Friday's close.