Sierra Wireless Shares Rise After JPMorgan Upgrade

NEW YORK (AP) — Shares of Sierra Wireless Inc. rose Thursday after JPMorgan upgraded the stock, saying Sierra's recent acquisition of Wavecom SA should help the company tap a wider set of markets.

JPMorgan analyst Paul Coster told investors in a note Thursday that Wavecom, a French wireless technology company, should expose Sierra to "several attractive long-term commercial and industrial growth markets." Sierra's traditional business is designing wireless modems for personal computers.

The company launched a tender offer for Wavecom in January at roughly $11.20 per share.

Coster said he prefers shares of Sierra to San Diego-based rival Novatel Wireless Inc. both because of the markets Sierra is entering and the price of its stock.

Aside from the acquisition, Coster said demand from consumers and businesses appears to be stabilizing.

He upgraded the stock to "Neutral" from "Underweight" and raised his price target to $12.50 from $7.50. That price target implies upside of 36.8 percent from its closing price Wednesday.

Shares gained 25 cents, or 2.7 percent, to $9.39 in morning trading.