UPDATE: Bank of America Upgrades Digital River to Buy on Catalysts and Valuation

Bank of America raises its rating on Digital River

from Underperform to Buy and increases its price objective from $17 to $19. Bank of America comments, "We are upgrading Digital River (DRIV) to Buy from Underperform due to an attractive valuation and upcoming Microsoft (MSFT) catalysts. Due to additional release date visibility about Windows 8 and Office 15, we are raising our 2012/2013 revenue ests to $408.1mn/$444.1mn from $404.3mn/$423.6mn and our non-GAAP EPS ests to $1.23/$1.48 from $1.23/$1.33, respectively. Our PO goes to $19 based on 7x our raised 2013 non-GAAP EPS plus $8/cash per share." DRIV closed at $15.21 on Wednesday.