ROYAL BANK ADS (RBS)

[mlkrborn]

Deutsche Bank Downgrades RBS To Hold
Last update: 2/3/2012 5:11:35 AM
1011 GMT [Dow Jones] Deutsche Bank downgrades Royal Bank of Scotland (RBS.LN), citing the 40% price rally year-to-date, and 30% rally since August 2011. "Despite thinking that RBS management are doing a solid job of re-shaping the bank into a more stable, attractive ROE, predominantly UK-based institution, we are concerned that it runs out of P/E-valuation upside long before the other two UK domestic banks, Barclays (BARC.LN) and Lloyds Banking Group (LLOY.LN)," both rated at buy. FY11 results due Feb. 23 should show core pretax profit of GBP6.3 billion ex-own debt, says DB. 30p target. Shares down 0.1% at 28p. ([e-mail])