UPDATE: Bank of America Downgrades Mitsubishi UFJ Financial Group to Neutral, Raises PT on Multiple Positive Factors

In a report published Wednesday, Bank of America analyst Nana Otsuki downgraded the rating on Mitsubishi UFJ Financial Group

from Buy to Neutral, but slightly raised the price target from $6.41 to $6.92. In the report, Otsuki noted, “We rate MUFG Neutral. Positives are (1) relative strength in the overseas business, (2) strongest capitalization among the Japan's major banks, which could give some capacities for various business developments, (3) good prospects for strengthening its group companies, and (4) generally limited credit risks on the balance sheet. However, negatives are continued NIM decline, risk of acquisition, and lack of catalysts while smaller direct benefits are likely from new government policies.” Mitsubishi UFJ Financial Group closed on Tuesday at $6.80.