JP Morgan: Channel Checks On SVR Positive

Analysts at JP Morgan reiterate their "overweight" rating on Syniverse SVR. The target price for SVR is set to $24. SVR will announce its Q2 earnings on August 2. JP Morgan says, “Our channel checks and comments from the company yesterday were both positive…. The overhang on the stock has been fears that large contracts will come up in 2011 and reduce price. We expect management to give some commentary around 2011 and our analysis indicates the impact from the contract renewals will be less than 2% of 2011 net revenue.” “Network has been decelerating for some time and previously the company has said this area was due to stabilize in 2010. It appears Syniverse has done a good job of displacing incumbents such as TNS and we expect the company to announce a few wins in North America around traditional voice SS7. In addition, carriers are investing in IPX offerings. We believe Syniverse will see growth return in this segment in the back half of the year to attain as much as maybe mid single digit growth for 2010,” the analysts add. More Analyst Ratings here