UPDATE: J.P. Morgan Downgrades Zagg as 3Q Results Align with Lowered Expectations

In a report published Wednesday, J.P. Morgan analyst Paul Coster downgraded the rating on Zagg (NASDAQ: ZAGG) from Overweight to Neutral, and lowered the price target from $7.00 to $5.00.In the report, J.P. Morgan noted, “ZAGG's 3Q results aligned with lowered expectations following the profit warning on October 10. The company did, however, trim 2013 revenue and EBITDA guidance for the third time in three quarters, so momentum is not good. Looking out to 2014 and 2015, we assume no growth, flattish margins, and stable EBITDA and EPS. The core InvisibleShield business is declining, and new product/new channel initiatives have to be successful to ensure a return to growth. Execution has been mixed, so we are taking a somewhat skeptical view. Our price target goes to $5.00, and we are downgrading ZAGG to Neutral.”Zagg closed on Tuesday at $4.72.