Deutsche Bank downgrades Goldman Sachs to "Hold"

NEW YORK (AP) -- A Deutsche Bank analyst on Friday downgraded Goldman Sachs Group Inc. to "Hold" from "Buy," saying that its shares have gotten too expensive.

THE OPINION: Analyst Matt O'Connor said that the investment bank's shares have risen about 50 percent since early August on "solid" second-half 2012 revenue and "very good" fourth quarter expense management.

But he said that Goldman faces increasing regulatory uncertainty and won't get as much of a benefit from cost cuts this year.

"While the first quarter tends to be a seasonally strong capital markets quarter (and Goldman should be a big beneficiary of this), the recent run up in the stock likely reflects at least some of this," O'Connor wrote in a note to investors.

Also on Friday, Citi removed Goldman from its "Recommended List," following its Thursday downgrade of the bank's stock to "Neutral" from "Buy." In that downgrade, Citi analyst Keith Horowitz said that while he expects the company's management to take steps to boost returns for shareholders, the shares are nearing their fair value.

THE SHARES: Down 44cents to $144.52 in afternoon trading. Over the past 52 weeks, the stock has traded between $90.43 and $146.75.

The stock has risen about 50 percent in the past six months.