UPDATE: Jefferies Lowers Price Target on Smith Micro Software to $1.10

According to Jefferies, Smith Micro Software SMSI price target is lowered to $1.10. Jefferies said that management declares that their issues at Verizon are due to a secular shift toward tablets and mobile hotspots rather than an inventory issue. “Our target is based on 0.6x 2012E P/Sales, which is above the multiples of fellow troubled wireless companies like SWIR 0.3x, NVTL 0.3x, and Nokia 0.5x due to SMSI's far higher GM, though lower than MMI 0.8x due to its take out premium.” Smith Micro Software closed yesterday at $1.28.