J.P. Morgan Downgrades Smith Micro Software From Overweight To Neutral (SMIS)

J.P. Morgan downgraded its rating of Smith Micro Software

from Overweight to Neutral today, and increased its PT from $15 to $17. In the report, J.P. Morgan states, "We are adjusting our model after the company's full-year guidance on 1/11/2011 and increasing our price target to $17. At the PT, this would only be an 8% return from the current stock price and not enough to keep us at an OW. More importantly, the stock has run 32% since mid October, and we believe much of our thesis on the iPad/MiFi benefits, Verizon LTE launch, and 2011 guidance are in the stock price. We do recognize the bull case on the 4G mobile broadband devices upgrade, but we believe it's priced in and the ramp may be slower than previously expected. Lastly, VZ yesterday announced the release of an iPhone capable of being a hotspot; in our view this will be a long-term overhang for the stock. Hence, we are stepping aside for now and downgrading to Neutral." SMIS stocks are currently trading at $14.01, -10.7% from yesterday's close.