J.P. Morgan Lowers PT On COMV To $5

J.P. Morgan, following the release of the company's 2Q results, has lowered its price target on Comverge COMV from $6.50 to $5. In its report, J.P. Morgan writes, “COMV reported 2Q results aligning with the preannouncement. The company reinstated formal guidance, which we applaud; however, the FY11 outlook is slightly below expectations. We continue to be encouraged by COMV's long-term growth opportunities but believe the stock will perform in line with the mean of our coverage over the next 6-12 months. The company faces an uncertain path to profitability and has signaled intent to raise capital, which will likely dilute existing shareholders, in our view. We are trimming our FY11 and FY12 revenue estimates and introducing FY13 estimates. We are establishing a YE12 price target of $5.00 (from a YE11 target of $6.50).” J.P. Morgan maintains a Neutral rating on the stock. COMV closed yesterday at $2.23.