UPDATE: Bank of America Upgrades Flextronics; Raises PO

According to a research report published this morning, Bank of America has upgraded Flextronics International FLEX from Underperform to Neutral, and raised PO from $6.50 to $7.50. Bank of America commented in the report, "Several reasons for our prior Underperform rating are now reversing including (1) consistency of improving margins at lower revenue levels (now targeting 3.5% OPM below $7bn prior rev target), (2) revenue headwinds from RIM getting incorporated into estimates post this round of estimate cuts, (3) reversal on the drag on margins from restructuring the RIM exposed assets over the next two quarters and (4) improving component margins through the course of the year for the power supplies business." Flextronics International closed yesterday at $6.77.