Deutsche Bank downgraded Lear (NYSE: LEA) from Buy to Hold with a price target of $127.00 (from $121.00). The change is tied to valuation.

Analyst Rod Lache said, "We are raising our 2015/2016 EPS estimates to $10.45/$11.50 from $10.05/$11.00. And we are raising our 12-month target to $127 from $121, as the Lear’s recent performance has convinced us of upside to our DCF modeling assumptions. More specifically, we are now assuming that Electrical Architecture achieves “trend” margins in the 14.1% range vs. 13.5% previously. We continue to believe that Seating can achieve trend margins in the 7% range. Our target corresponds with an 11x 2016 P/E and 5.9x EV/2016 EBITDAP. With 5% upside to our target, we’re lowering to Hold."

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

Shares of Lear closed at $120.94 yesterday.