J.P. Morgan Upgrading Novatel Wireless

J.P. Morgan Chase & Co. is upgrading shares of Novatel Wireless

to Neutral from Underweight, and it has a $5.50 price target on shares. In a note to clients, J.P. Morgan writes, "We are upgrading NVTL to Neutral from Underweight on valuation. We are not changing estimates, which remain below consensus. NVTL has traded down 48% YTD (S&P 500 up 6%) and is now approximately 10% below our price target, approximating fair value, in our view. We believe further downside is now limited with LTE newsflow increasing, and we believe the stock could trade up from here on improving sentiment, though we remain long-term skeptics regarding NVTL's core mobile computing business. Our December 2011 price target remains $5.50." Shares of NVTL lost 5 cents on Friday to close at $5.01, a loss of 1%.