LONDON (ShareCast) - (Sharecast News) - Deutsche Bank downgraded Tristel on Monday to 'hold' from 'buy' on share price strength.
The bank said the shares have re-rated strongly, up 53% since early April, on no consensus upgrades, confirming DB's prior thesis that shares were too cheap to begin with.

Deutsche said the valuation has reverted to a mid-teen EV/EBITDA multiple (mid-to-high teen historically) and 4% free cash flow yield, which it believes looks fair, considering there remains an element of a "show-me" story with respect to US expansion and returning the core business to double digit growth.

"We make no material changes to estimates, nudging our target price to 400p (385p), rolling forward valuation, but move to hold on more balanced risk-reward," DB said.

At 0935 BST, the shares were down 0.4% at 413.50p.

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