Sonic Solutions Provides New Guidance, JP Morgan Raises Price Target (SNIC)

Sonic Solutions (NASDAQ: SNIC) has provided new FY12 guidance for the combined company now that it has partnered with RoxioNow.

Sonic Solutions forecasted FY12 EPS of $0.44-$0.59, far higher than JP Morgan's prior estimate of $0.19.

JP Morgan analysts Paul Coster, Marija Krgovic, and Mark Strouse have raised their estimates based on this guidance.

The analysts said, "With increased evidence from a succession of marketing partnerships that RoxioNow has strong momentum going into the 2010 holiday season, we are revising our estimates to align more closely with this guidance, though we remain below the low-end of the EPS range, owing to the risks inherent in this de novo business."

The price target was raised to $13.50, from a previous target of $13.00. SNIC is rated Overweight, and is currently trading at $8.20.