UPDATE: Bank of America Lowers PO on Ambow Education to $4.90

In a report earlier today, Bank of America remains at an Underperform rating for Ambow Education Holding Ltd AMBO. Bank of America stated, "Despite a 44% drop in the stock price (mainly due to delay in 20F filing), we reiterate Underperform as Ambow's business outlook is bleak, in our view – we see low/single-digit growth in its K-12 School & College biz, while growth in Tutoring is below peers. The Career Enhancement segment is growing fast (courtesy partnerships with MOE and colleges). But within the business, the corporate segment can be volatile in an economic downturn. Also, Ambow restated earnings in its 20F filing, which may raise corporate governance concerns. All said, the risk-reward is unfavorable, in our view." Bank of America has lowered the price objective from $7.10 to $4.90 on Ambow Education, which closed at $4.50 yesterday.