UPDATE: J.P. Morgan Downgrades Bona Film Group to Neutral, Lowers PT

In a report published Friday, J.P. Morgan & Co. downgraded its rating on Bona Film Group Ltd.

from Overweight to Neutral, and slightly lowered its price target from $7.00 to $6.00. J.P. Morgan noted, “Bona reported inline 2Q12 revenue with earnings topping previous guidance. The year-end slate looks very promising and 2013 slate also boosts a decent line-up. Stock has performed fairly well on the back of chairman's buyback (at US$5.5/ADS) in early April and in anticipation of grand release for some major titles. However, we prefer to wait until mid/late-4Q for better visibility of these factors, as we believe a big effort is required from Bona to meet its full year adj. net income guidance of US$22Mn. In addition, Bona's shares outperformed sector peers year-to-date. We cut rating to Neutral on the back of lackluster 3Q guidance. We recommend investors to wait until Dec when we see potential upside catalysts in box office results as well as major TV drama contribution.” Bona Film Group Ltd. closed on Thursday at $5.65.