UPDATE: Bank of America Lowers Harmonic's PO

According to a research report published this morning, Bank of America has lowered Harmonic's

PO from $6 to $5.25. In the report, Bank of America commented, "Q1 results were in line with the April 9th preannouncement. Q2 guidance was slightly shy of street expectations (in line with ours). The slower than anticipated order rates and soft demand in Europe were the focal points of the revenue shortfall, and resulted in a significant impact to gross margin and profitability. We previously reduced our estimates following the preannouncement, and are further tweaking our model to reflect the full results. We are reducing our PO from $6.00 to $5.25 based on ~10x 2013 P/E to reflect concerns in the demand environment, and maintaining our Neutral rating. The near term environment remains a challenge, but we continue to favor the underlying secular growth drivers such as expansion of pay TV and multi-screen video." Bank of America maintains its Neutral rating on Harmonic, which closed yesterday at $4.58.