J.P. Morgan Downgrading TeleCommunication Systems

J.P. Morgan Chase & Co. is out with a research report on TeleCommunication Systems, Inc. TSYS to Neutral from Overweight, and cut the price target to $6.50. In a note to clients, J.P. Morgan Chase & Co. writes, "We are downgrading TSYS to Neutral and lowering estimates to reflect weakness in Government Systems sales, owing to delays in funding major projects. We are also concerned that declining SMS volumes may weigh on commercial segment revenue. In short, we believe the back-end loaded ramp in 2011 seems at risk. Our December 2011 price target goes to $6.50 (from $7.00)." Shares of TSYS gained 15 cents yesterday to close at $5.20, a gain of 2.97%.