UPDATE: Bank of America Merrill Lynch Lowers Price Objective on A123 Systems to $8 (AONE)

Bank of America Merrill Lynch is out with its report today on A123 Systems

, lowering its price objective from $10 to $8. In a note to clients, Bank of America Merrill Lynch writes, "Last quarter, we upgraded the stock to Neutral a bit prematurely as the fund raising and 1Q guidance cut took the stock down again. With the stock near $6 per share and over $5 in tangible book, however, we see limited downside risk as shipments should begin to increase. We are reducing our price objective from $10 to $8 per share based on lower comp multiples and the company's reduced long-term gross margin target of 25%." At the time of posting, shares of AONE were trading pre-market at $5.98, up 1.53% from Monday's close.