UPDATE: J.P. Morgan Downgrades Avid Technology to Neutral Following Trimmed Estimates

In a report published Monday, J.P. Morgan analyst Paul Coster downgraded the rating on

from Overweight to Neutral, and lowered the price target from $8.50 to $6.50. In the report, J.P. Morgan noted, “AVID's path back to growth, profitability and timely filing of quarterly financials remains uncertain. The firm continues to play a key role in professional media creation, but much of the market (ingest, editing and storage) has matured weighing on growth prospects in the near-term. We expect the new leadership team to focus on post-production, and distribution moving forward but the reconfiguration of the firm's product strategy to address that opportunity could last six months or more. We are cutting estimates to reflect this transition, and lowering our Price Target to $6.50. We are also downgrading the stock to Neutral.” Avid Technology closed on Friday at $5.88.