UPDATE: Deutsche Bank Downgrades BRE Properties on More Balanced Risk/Reward

In a report published Friday, Deutsche Bank analyst Vin Chao downgraded the rating on

from Buy to Hold, but reiterated the $57.00 price target. In the report, Deutsche Bank noted, “Though we continue to see modest upside to BRE's shares from current levels, we are moving to the sides following the announced merger agreement between BRE and ESS. Our downgrade to Hold is not reflective of a change in our fundamental outlook for BRE, which remains positive. However, with near-term trading likely dictated by merger arb dynamics and the immediate upside now behind us, we believe the risk/reward is now more balanced.” BRE Properties closed on Thursday at $54.11.