** Kepler Cheuvreux downgrades Swedish real estate group SBB OMXSTO:SBB_B to "reduce" from "hold" on the back of "too demanding" valuation
** It points out that the stock price is up by nearly 80% in last two months, priced at SEK 5.5 on Wednesday at 0913 GMT
** Kepler notes that the landlord's better-than-expected Q1 report included a particularly high financial income, which in the broker's view does not reflect the current run rate
** Contributions from associates and JVs were significantly below their underlying earnings capacity, it adds
** Given the above, "it is hard to draw any definitive conclusions from the report," as per the brokerage
** It sees slightly lower financial and administrative costs going forward, which helps to mitigate the negative effect from the rights issue of about 11%
** Kepler raises PT by 22% to SEK 4.50 citing earnings revisions, the time value effect, and a reduced risk premium to 10% from 20%