UPDATE: Deutsche Bank Downgrades JP Morgan to Hold

Deutsche Bank reduced its rating on JP Morgan

from Buy to Hold and cut its price target from $43 to $40. Deutsche Bank noted, "[W]e have become increasingly concerned that: 1) EPS expectations may be too high (our 2013e is 3% below consensus and we have a downward bias to our est.), 2) capital deployment may disappoint (we think Fed approval for meaningful buybacks in 4Q12/1Q13 is unlikely) and 3) regulatory/legal matters (such as LIBOR, VAR model changes, CIO loss disclosures, etc) remain uncertain. Given these and a 19% rise in the stock off recent lows, we think the risk/reward is less compelling." JP Morgan closed at $36.89 on Friday.