UPDATE: Deutsche Bank Downgrades NetGear to Hold

Deutsche Bank downgrades NetGear

to Hold from Buy and lowers its price target by $2 to $40 a share on company plans to increase operating leverage. Deutsche Bank says, "Netgear reported Q4 revenue of $309m, ahead of our estimate and consensus of $307m. Pro forma EPS of $0.69 came in ahead of our estimate and consensus of $0.63. The company guided slightly above expectations. We think underlying demand remains intact; however, the company's plans to increase operating expenses may hamper their ability to exhibit further operating leverage." NTGR closed at $42.28 a share yesterday.