UPDATE: J.P. Morgan Lowering Price Target On Flextronics (FLEX)

J.P. Morgan Chase & Co. is lowering its price target on shares of Flextronics FLEX to $8.50 from $10, but is keeping its Overweight rating on shares after it reported earnings. In a note to clients, J.P. Morgan writes, "FQ4 revenues were weak and EPS was also below our forecast as FLEX saw soft demand across most industries. FQ1 2012 margin guidance is depressed as FLEX remains challenged to correct the out-of-line cost structures of the ODM computing, camera module, power supply and Multek PCB businesses. Although the margin improvement story is taking more time to reach fruition than we anticipated, we continue to believe shares have attractive upside potential assuming management executes on its cost improvement strategy and commodity pressures abate. Near-term headwinds for Infrastructure and Mobile Devices look temporary. We still forecast low double digit EPS growth in 2012 although we no longer believe FLEX deserves to trade near peer-average multiples given its modestly slower growth and lower margins than peers. Maintain Overweight." Shares of FLEX are down 56 cents in pre-market trading to $6.95, a loss of 7.5%.