J.P. Morgan Overweight On Avid Technology

J.P. Morgan Chase & Co. has an Overweight rating and a $25 price target on shares of Avid Technology, Inc. AVID. In a note to clients, J.P. Morgan writes, "We believe the company is experiencing a cyclical rebound in demand for IT infrastructure needed to support film and TV production and secular growth from the move from tape-based to shared server storage, from standard definition to high-definition, and from the first-time adoption of 3D and media-asset management tools. Guidance calls for a move to 5% operating margins on about 5% growth in 2011. We believe the Street is underestimating the leverage in this restructured business model, particularly if demand picks up. Price target $25.00." Shares of AVID gained 46 cents yesterday to close at $17.47, a gain of 2.7%.