UPDATE: Deutsche Bank Downgrades General Electric As Earnings Headwinds Are Likely To Prevail

In a report published Tuesday, Deutsche Bank analyst John G. Inch downgraded the rating on

from Buy to Hold, and lowered the price target from $30.00 to $28.00. In the report, Deutsche Bank noted, “In our opinion, GE is on the right strategic track to create long-term shareholder value by continuing to focus on structural and operating cost reduction, shrinking GE Capital and improving overall efficiency. However, the merits of GE's simplification and restructuring actions appear to be proportionately offsetting Capital downsizing and still challenged global power generation markets. Moreover, we now expect earnings headwinds from Capital to be greater than we previously modeled, while the collapse in energy prices seems likely to provide an incremental challenge to GE – both directly and indirectly.” General Electric closed on Monday at $24.60, down 1.8 percent.