UPDATE: J.P. Morgan Downgrades Bally Technologies to Neutral

J.P. Morgan is out with its report today on Bally Technologies BYI, downgrading J.P. Morgan to Neutral from Overweight. In its report, J.P. Morgan writes, "We are lowering our rating on BYI shares from Overweight to Neutral. We previously believed that BYI had specific opportunities to deliver at least $2.62 in F2012 EPS given company specific earnings drivers such as Canadian systems, Aqueduct, and Italy. We no longer view this EPS scenario as realistic given tough general industry conditions, including 1) little pickup in replacement demand, 2) a lack of new market opportunities, and 3) increased competition/improved content from IGT and Konami, as well as the uncertainty related to the timing and relative contribution of BYI's specific drivers." J.P. Morgan lowers its PT to $35 from $45.. At the time of posting, shares of BYI were trading pre-market at $30.50, down 13.45% from Thursday's close.