UPDATE: Bank of America Downgrades Standard Pacific Corp.

In a not released Monday morning, Bank of America analyst, Michael Roxland downgraded shares of Standard Pacific Corp.

from Buy to Neutral and lowered the price target from $9 to $8.50. Roxland commented, "Our thesis on SPF had centered on the company's ability to maintain gross margins at higher levels than it has historically while also experiencing better order growth than peers given its positioning and targeted demographic." He added, "While we still believe the company will post strong gross margins and order growth long-term, in the near-term, SPF is currently experiencing some headwinds". Looking on the bright side, Roxland noted Standard Pacific has undertaken a number of initiatives that, if successful, could ultimately benefit the company. Included in these initiatives are a share buyback program and a cost-take out.