UPDATE: J.P. Morgan Raising Price Target On TeleCommunication Systems

J.P. Morgan Chase & Co. is out with a research report on TeleCommunication Systems TSYS and is raising its price target to $7.50, and it has a Neutral rating on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "TSYS reported 2Q EPS above expectations on in-line revenue. Government Systems revenue aligned with our recently lowered estimate. The services businesses came in stronger than expected, resulting in strong 2Q margins. FY11 revenue guidance was trimmed but the expected weakness is related to the low-margin systems business, so FY11 EPS guidance was reiterated. Consensus revenue estimates were already below guidance so the revised forecast should not likely have much impact on the stock. We are adjusting our estimates slightly and introducing FY13 estimates with this note. We are establishing a YE12 price target of $7.50 (from a YE11 price target of $7.00). Maintain Neutral." Shares of TSYS gained 2 cents yesterday to close at $5.11.