UPDATE: Bank of America Merrill Lynch Lowers PO on Sun Healthcare to $3

Bank of America Merrill Lynch is out with its report today on Sun Healthcare SUNH, lowering its PO from $3.50 to $3. In its report, Bank of America Merrill Lynch writes, "Following the quarter, we are maintaining our estimates but lower out PO to $3 from $3.50 as we continue to see more downside risk to our estimates given the potential cuts from the debt ceiling negotiations." Bank of America Merrill Lynch maintains Underperform on SUNH. Shares of SUNH closed Tuesday at $2.50.