UPDATE: Bank of America Merrill Lynch Reiterates Underperform Rating, Lowers PT on SMART Technologies

In a report published Monday, Bank of America Merrill Lynch reiterated its Underperform rating on SMART Technologies

, but slightly lowered its price target from $1.75 to $1.40. BofA Merrill Lynch noted, “While we are cautious on the stock because of the spending environment, we believe the long term value proposition of SMART remains solid. We believe education technology will remain a key priority spending area for governments and parents alike, and SMART could benefit in the long term from its commanding 45% global market share (50% ex-China). The company continues to expand its portfolio to address price-sensitive markets, looking to growth penetration in emerging markets like Russia and India, where penetration rates are relatively low (at 19% and 1%). Another focus area is the enterprise market, which only accounts for ~15% of revenues and remains a large and untapped growth opportunity.” SMART Technologies closed on Friday at $1.50.