JP Morgan Remains Neutral, Establishes $33 PT on Amdocs

In a published note, J.P. Morgan maintains Neutral rating on Amdocs

and has lowered its 2012 estimates despite in-line quarter results. A price target of $33 was established for Dec 31, 2012. J.P. Morgan commented, “Amdocs finished off their FY2011 year with organic constant currency growth of 5%, at the middle of their 4-6% FY2011-FY2013 range. In 2012, we believe there are opportunities in Europe and business overall is healthy, but the AT&T and T-Mobile merger delay, the macro environment and slower ramp in cable and digital services is dampening our outlook for 2012 to 4.5% yoy growth. Although we are not forecasting repurchase for the remainder of 2012, we think one of the main drivers for DOX will be its repurchase program until the environment recovers and customers start spending again." DOX closed at $28.88 on Tuesday.