UPDATE: Bank of America Merrill Lynch Reiterates Underperform Rating, Lowers PT for Noah Holdings

In a report published earlier today, Bank of America Merrill Lynch reiterated its Underperform rating for Noah Holdings Limited

but lowered its price target from $9.60 to $7.70. BofA Merrill Lynch went on to say “With a further review of the macro environment and capital market in China, we now take a more cautious stance to the outlook of Noah after our downgrade yesterday. We cut our PO to USD7.70 as we cut growth rate from 8% to 7% in DCF to reflect macro uncertainties and upgraded competition from trust companies. While we still see some upside to our DCF derived PO, it appears insufficient to justify a positive stance given the fundamental risks.” Noah Holdings Limited closed yesterday at $6.55.