MADRID (MarketWatch) --
Deutsche Bank AG was downgraded to neutral from overweight on Tuesday by J.P. Morgan Cazenove on valuation grounds. "The rationale for our rating upgrade on Sept. 6 was i) capital raising is priced in at €24, ii) it implicitly is guaranteed by Germany operating with low credit spreads and hence our euro default bank overweight," said the analysts. But with the long-term refinancing operations of the European Central Bank, funding is "clearly less of an advantage," they said. As well, at current share prices, risk-reward is less attractive than its peers, the analysts said. "On an absolute basis, DB appears rangebound between €23-33 and hence standalone risk-reward appears neutral today considering our estimated €7.6 billion ($9.9 billion) capital deficit."Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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