UPDATE: JP Morgan Initiates Intermolecular at Overweight

JP Morgan initiated coverage of Intermolecular

today, giving the company an Overweight rating and $17 price target. In the report, JP Morgan writes, "IMI's R&D acceleration enables customers to significantly reduce manufacturing development cycles, rapidly drive down cost curves and enable a faster time to market. A collaborative customer business model generates revenue through fixed and recurring licensing/royalty revenue streams, and this should drive revenue and EPS growth of 40% and 185% CAGR, respectively, over the next three years and drive the stock toward our price target." Shares of Intermolecular are trading at $9.06, up 2.72% from yesterday's close.