Avid Technology Upgraded To Overweight By JP Morgan

JP Morgan has published a research report on Avid Technology AVID and has upgraded the company to Overweight. In the report, JP Morgan writes "Following AVID's analyst day, meetings with management yesterday, and data points supporting continued global strength in box office revenues and a recovery in TV advertising, we are nudging up estimates slightly. We believe AVID is entering a recovery phase under the new management team; gross margins should expand with the shift toward software; restructuring should yield operating leverage; and we think a new product cycle positions the company to maintain market share in a modest cyclical recovery in end-market demand. We believe it makes sense to apply a peak multiple (e.g.,2005-2007) to AVID earnings." JP Morgan has also raised the price target on Avid Technology to $21 from $17.50. Avid Technology closed yesterday at $17.15.