Sun Microsystems

(SUNW) - Get Report

was up 4.8% in preopen

Island

trading after sliding sharply in the past two sessions and hitting a 52-week low Monday. Late Monday, the network computer company denied rumors that it faced accounting problems. The stock has also been hurt by analyst reports questioning the company's growth prospects.

CNBC

this morning said

Banc of America

downgraded Sun to buy from strong buy.