UPDATE: Jefferies Raises PT on Novatel Wireless on Multiple Challenges Ahead

In a report published Monday, Jefferies analyst Peter Misek reiterated a Hold rating on Novatel Wireless NVTL, and raised the price target from $2.75 to $4.00.

In the report, Jefferies noted, “We think a pause in enterprise spending affected many of our companies' Q2 results and bookings. We trim our estimates and target on IBM as we expect weak services bookings, a tough environment for software, and a delayed System x sale to lead to lowered guidance. We think EMC's Q2 will be inline to slightly below expectations but see a strong H2 ramp. We believe Allot had a solid quarter with strong bookings.”

Novatel Wireless closed on Friday at $3.98.