Deutsche Bank announced on Tuesday that it had downgraded its recommendation on ABN Amro shares from 'buy' to 'hold', with a price target reduced from €22 to €15.

In a note released this morning, the intermediary explains that the net interest income of the Dutch banking group, its main earnings contributor, is set to ease after peaking at the beginning of the year, a phenomenon accentuated by the headwinds on the horizon.

Added to this is the diminishing impact of recent cost-cutting measures, adds the analyst, who expects the company's non-recurring earnings to come under pressure as a result.

Of course, the group's stock market valuation remains cheap, reminds the professional, but this element is not sufficient to guarantee the share's outperformance as operating momentum falters, he assures.

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