UPDATE: Deutsche Bank Downgrades ABB to Sell on Weak Demand, Competitive Concerns

Deutsche Bank reduced its rating on ABB

from Hold to Sell and lowered its price target from $17.50 to $15. Deutsche Bank noted, "Electricity Transmission & Distribution (T&D) investment goes through multi-decade investment cycles, most recently being supported by demand growth in emerging markets, and reliability upgrades and renewable energy interconnects in the west. For equipment players we see existing competitive threats getting tougher as Chinese players focus on exports, and see demand growth potentially weakening as western governments slow renewable investments in an age of austerity and cheap gas." ABB closed at $18.03 on Monday.