UPDATE: Deutsche Bank Downgrades Prudential Financial to Hold, Lowers PT on Lower-Than-Expected Earnings

In a report published Monday, Deutsche Bank analyst Yaron Kinar downgraded the rating on

from Buy to Hold, and lowered the price target from $101.00 to $90.00. In the report, Deutsche Bank noted, "Our Buy thesis had been predicated on improving capital flexibility as well as on PRU's business model being less interest rate sensitive compared to peers'. However, interest rate under-hedging has exposed shortcomings in both legs of our thesis and we would prefer to revisit the name in 2H15, after the annual assumption review is complete and a decision on buyback authorization is made. We are also decreasing our 2015E-2106E EPS, to $9.60 and $10.25, to reflect lower-than-expected baseline earnings in 2014 and lower interest rates." Prudential Financial closed on Friday at $77.80.