UPDATE: JP Morgan Cuts PT to $7 on TeleNav; Updates Model for Enterprise Business Sale

JP Morgan maintained TeleNav

with a Neutral rating and lowered the price target from $8.00 to $7.00. JP Morgan analyst Paul Coster commented, "TNAV announced the sale of its enterprise business to FleetCor Technologies for $10mm in cash, with an expected closing date in 30 days. We are adjusting our model for the one-time cash payment, and removing recurring quarterly revenue of $3mm from our revenue estimates ($12mm annually). The business model is transitioning slowly from subscriber-based to ad-based and auto OEM revenue, and much depends on the adoption of the Scout app in a crowded TBT navigation market." TeleNav closed at $6.57 on Tuesday.