UPDATE: JP Morgan Upgrades Synchronoss Technologies to Overweight on Valuation

JP Morgan raises its rating on Synchronoss Technologies

from Neutral to Overweight and maintains its $27 price target. JP Morgan notes, "We are upgrading SNCR to OW from N based on valuation. SNCR shares have pulled back 39% since 1Q12 earnings where management talked about AT&T 6th channel reducing volumes. We think the $9M reduction is now priced in and at 1.6x EV/Sales, 13x earnings and 9x FCFF on 2013E, the risk reward now favors to the upside. We do not believe this is a broken business. SNCR remains a double digit organic grower, it is continuing to expand in all channels at AT&T, it just signed a long-term expanding relationship at Verizon and there is potential for upside with additional carrier or upsell opportunities." SNCR closed at $17.21 on Wednesday.