UPDATE: JP Morgan Reduces PT to $9 on Avid Technology on Negative Pre-Announcement

JP Morgan reiterated its Overweight rating on Avid Technology

and lowered its price target from $10.50 to $9. JP Morgan noted, "AVID issued a 3Q profit warning, citing poor sales execution in the U.S. and the restructuring action taken in July. The July cutbacks, which we viewed as essential, may have impacted retained businesses, raising a question mark over execution. … AVID believes the decline in revenue and profits for 3Q was largely due to sales execution in the Americas region, and transitional issues relating to the strategic cutbacks announced in July. This suggests that cutbacks were too deep or made too quickly, though we view these cutbacks (and more) as essential." Avid Technology closed at $8.17 on Friday.