UPDATE: JP Morgan Downgrades Trimble Navigation to Neutral on Balanced Risk-Reward

JP Morgan downgraded Trimble Navigation TRMB from Overweight to Neutral and raised the price target from $60.50 to $63.00. JP Morgan commented, "We are downgrading TRMB on valuation. TRMB beat 4Q expectations, issued mixed 1Q guidance, and reiterated 2013 outlook that calls for at least 15% revenue growth. TRMB's long-term growth prospects remain very good, the firm could realize record operating margins over the next two years, and management narrative was constructive. That said, the stock has hit our 2013 Price Target and we are reluctant to award a higher P/E multiple until we get better clarity regarding US fiscal policy; Federal budget decisions could impact domestic E&C revenues, the key driver of 2013-14 growth." Trimble Navigation closed at $63.50 on Tuesday.