UPDATE: Bank of America Merrill Lynch Lowers PO on Resources Connection to $16

Bank of America Merrill Lynch is out with its report today on Resources Connection RECN, lowering its PO from $19 to $16. In a note to clients, Bank of America Merrill Lynch writes, "We continue to like RECN's near-term cyclical revenue rebound and SG&A leverage. We also like its medium-term growth story of gaining market share against the Big Four on non-audit projects. However, we are lowering our target to $16, 20x FY13E EPS of $0.81 (versus 23x previously) given weaker trends in the higher-margin US segment." At the time of posting, shares of RECN were trading pre-market at $12.97, up 6.49% from Thursday's close.