UPDATE: Deutsche Bank Downgrades HSBC on Lay Offs to Cut Costs

In a report published Wednesday, Deutsche Bank analyst Jason Napier downgraded HSBC HBC from Buy to Hold.

In the report, Deutsche Bank noted, "We were not disappointed by what we heard today, but neither were we surprised relative to our estimates. HSBC has a strong balance sheet, a well supported significant dividend yield and management aiming for low double digit EPS growth. However with the stock trading in line with our SOTPderived TP we must either shift valuation multiples or conclude that the market has fairly priced the nearer term earnings power of the business. So, though we expect investors who were in search of “steady compounders” to stick with HSBC, we downgrade from Buy to Hold, retaining our 750p target price."

HSBC currently trades at $57.06.