UPDATE: Deutsche Bank Downgrades Spectra Energy to Hold Post EPS Miss

Deutsche Bank reduced its rating on Spectra Energy

from Buy to Hold and cut its price target from $37 to $30. Deutsche Bank commented, "SE reported 2Q'12 eps of $0.33 vs $0.44 in 2Q'11. Our estimate and consensus were $0.40. While we anticipated a decline in quarterly earnings due to commodity exposure, the magnitude of the decline, especially at the DCP Midstream joint venture and at Empress (Canadian Transmission and Processing) were much greater than expected. Our updated models and valuations are included with this report but may be summarized by a reduction in earnings estimate for 2012 from $1.80 to $1.40 and from $2.00 to $1.55 for 2013." Spectra Energy closed at $29.58 on Thursday.