UPDATE: Bank of America Merrill Lynch Reiterates Buy Rating, Lowers PT on Resources Connection

In a report published Friday, Bank of America Merrill Lynch reiterated its Buy rating on Resources Connection RECN, but slightly lowered its price target from $16.00 to $15.00. BofA Merrill Lynch noted, “2QF13 (November) EPS of $0.14 was $0.02 below our forecast and consensus. Operating income was 2% higher than our forecast but higher taxes lowered EPS by $0.02. Revenue of $141mn was down 2.6% from the prior year (-1.9% constant currency) and was in line with our estimate. Gross margin of 39.1% was up 120bp YoY and 20bp ahead of our forecast. SG&A of $42mn was flat versus 1Q, as expected. We are decreasing FY13E EPS by $0.05 to $0.57 on lower margin forecasts and expect flat constant currency revenue growth and 70bp of operating margin expansion.” Resources Connection closed on Thursday at $12.40.