J.P. Morgan Maintains $9.50 PT, Neutral Rating On TNAV

J.P. Morgan expects TeleNav, Inc. TNAV to report in-line results, “providing us with a sequential comp post transition to fixed fee with Sprint S.” “However, TNAV is still in transition, and we expect the business model to stabilize towards 2H CY11,” J.P. Morgan writes. “While we think TNAV is attractively valued, competitive threats (especially Android handsets) still weigh on sentiment, the business model remains uncertain with emerging categories still being nascent, and the customer concentration risk remains a concern.” J.P. Morgan is maintaining its Neutral rating and $9.50 PT on shares of TeleNav, which closed Monday at $10.76.