Deutsche Bank Downgrades Nomura (NMR) to Hold

Deutsche Bank downgraded Nomura (NYSE: NMR) from Buy to Hold.

Analyst Masao Muraki said, "Financial stocks are declining globally (Figures 1-2). We believe that the strong risk-off sentiment is due to concerns such as a possible recession, a turning point in the credit cycle, stricter regulations and QE resulting in lower liquidity in financial markets, and falling interest rates. The average P/B of global financial institutions is now below 1.0x, and the P/E ratios for US and UK financial institutions have fallen to the 7-10x range (Figures 3-4). Although we had previously been cautious regarding the credit cycle, we are now lowering our earnings forecasts and target prices because of the increasing probability that the cycle is approaching turning point."

For an analyst ratings summary and ratings history on Nomura click here. For more ratings news on Nomura click here.

Shares of Nomura closed at $4.79 yesterday.

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