UPDATE: J.P. Morgan Downgrades RPX Corp. to Neutral, Reiterates $16 PT on Valuation

In a report published Friday, J.P. Morgan analyst Paul Coster downgraded the rating on RPX Corp.

from Overweight to Neutral, but reiterated the $16.00 price target. In the report, Coster noted, “RPX is an intellectual property risk management service company. RPX offers global operating company clients protection against patent litigation by non-practicing entities (NPEs), which, because they do not have operations, cannot be countersued, and other patent owners. Offered on a subscription basis, RPX services include defensive buying of patents that put clients at risk, syndicated acquisition of patents, information and advisor services relating to patent litigation and the patent market. In our view, much like other aggregators in the rapidly evolving and rapidly growing IP industry, RPX creates efficiency through transparent and rational pricing, but it does so in a manner uniquely aligned with the interests of the operating companies.” RPX Corp. closed on Thursday at $15.69.