UPDATE: Bank of America Downgrades Cbeyond to Underperform on Execution Risk

Bank of America reduced its rating on Cbeyond CBEY from Neutral to Underperform with a reiterated $8.50 price objective. Bank of America commented, "We are downgrading Cbeyond from Neutral to Underperform based on execution risk, economic headwinds and elevated expectations with regard to M&A. We believe the company's Cbeyond 2.0 transition is taking the company in the right strategic direction, but will prove a more time-consuming, complex and expensive exercise than that mapped out now. Further, recent alternative carrier M&A has raised acquisition expectations across the group, but we don't view Cbeyond's current set of assets and customers as fitting most acquirers." Cbeyond closed at $9.88 on Tuesday.