UPDATE: JP Morgan Upgrades WMS Industries to Neutral Following Acquisition Offer

JP Morgan upgraded WMS Industries

from Underperform to Neutral and raised the price target from $13.00 to $26.00. JP Morgan commented, "We are upping our rating on WMS to Neutral from Underweight and take our year-end 2013 price target to $26 from $13, reflective of Scientific Games' (SGMS, rated Neutral) acquisition offer price announced yesterday morning. At this point, our investment thesis of soft company-specific fundamentals driving estimates lower takes a backseat to M&A, and thus our fundamentally driven rating is no longer relevant. The acquisition is expected to close by the end of 2013, pending WMS shareholder approval, as well as U.S. antitrust and various gaming regulatory approvals. At this point, we believe WMS's stock will trade in a relatively tight range up to the closing date." WMS Industries closed at $24.75 on Thursday.