(Changes source, adds details)
Jan 16 (Reuters) - Deutsche Bank downgraded JPMorgan Chase & Co (JPM.N) to “hold” from “buy”, due to accelerating problems in U.S. consumer banking.
Deutsche Bank, in a note dated Jan. 15, also cut its price target on the stock to $44 from $56, and said the No. 3 U.S. bank cannot escape tougher external conditions, but is better positioned versus peers.
JPMorgan on Wednesday said its quarterly profit fell a worse-than-expected 24 percent, as it lost $1.3 billion on risky mortgages and set aside more money for rising losses on home-equity loans.
Citigroup (C.N), the largest U.S. bank, posted a record quarterly loss on Tuesday, and Deutsche said this raises extra concerns about JPMorgan, whose total credit losses could touch $11 billion in 2008.
Deutsche Bank cut its 2008 earnings forecast on JPMorgan to $3.80 per share, down from its earlier estimate of $4.35 a share. (Reporting by Nachiket Kelkar in Bangalore; Editing by Pratish Narayanan)