Deutsche Börse downgraded to "hold"

28.07.09 - UniCredit Markets & Investment Banking

LONDON, July 28 (newratings.com) - Analysts at UniCredt Markets downgrade Deutsche Börse AG (DB1) from "buy" to "hold," while reducing their estimates for the company. The target price has been reduced from ?72 to ?64.

In a research note published this morning, the analysts mention that the company continues to witness weak trading volumes and a continuation of this trend might restrict its earnings in the near future. Deutsche Börse's clearing offer for CDS OTC contracts is expected to start this week and witness small volumes in the beginning, the analysts add. The company is unlikely to resume buybacks this year, UniCredit Markets says. The EPS estimates for 2009 and 2010 have been reduced by 7% and 8%, respectively.