UPDATE: Deutsche Bank Downgrades LMI Aerospace, Inc.

In a note dated September 4, Deutsche Bank analyst Myles Walton downgraded shares of LMI Aerospace, Inc. (NASDAQ: LMIA) from Buy to Hold and maintained a $16 price target.

Walton noted the company has been showing signs of an improved cost structure liquidity. However, he believes with the market price nearing his target price, there is little room for significant upside.

Despite forecasts of further margin expansion over 2014 and 2015, Walton views LMI's $20 million per year interest payments on its debts as a limiting factor to the company's earnings over the same time period.

As possible downside risks, Walton listed contract execution, cash flow "hiccups" and reductions in the production rate.