UPDATE: Deutsche Bank Downgrades WMS Industries to Sell Following Share Rally

Deutsche Bank reduced its rating on WMS Industries

from Hold to Sell and lowered it price target from $15 to $13. Deutsche Bank noted, "After bottoming on August 7, post a meaningful F4Q12 miss and weaker implied guidance versus Consensus forecasts, WMS shares have rallied more than 23% on broader market strength (SPX +4%) and little company specific news. Given what we see as stretched valuation (~17.3x our F2013 EPS), and several company specific issues, we are downgrading WMS to Sell from Hold. In addition, we are lowering our price target to $13 from $15 as we reduce both our near term and out year EPS estimates." WMS Industries closed at $17.13 on Monday.