J.P. Morgan Lowers PT To $8.50 From $10.00 On Smith Micro Software (SMSI)

In a recent report, J.P. Morgan has lowered the December 31, 2011 price target on Smith Mirco Software SMSI to $8.50 from $10.00 based on 3x revenue. In the report, J.P. Morgan said, "We are reducing our price target to $8.50 which is based 3x revenue. This compares to our coverage at 3.9x but given the uncertainty on the 2H revenue stream, we think a discount is warranted. Remember, the company is not reducing their cost structure but we are taking down our revenue and hence we think it will take some time for the company to break even unless they change their minds on the cost structure." SMSI closed yesterday at $7.48.