Despite raising 2010 earnings forecasts significantly on Asian container shipping sector, Deutsche Bank turns cautious going into 2H10, according to Dow Jones.

Deutsche Bank says industry recovery surprised on upside, expects decent 2Q profits, early signs suggest 3Q will be even better, but notes channel checks point to 4Q industry slowdown, increasing supply presents sector headwinds in 2011.

The research house also forecasts supply growth to accelerate from 2010’s 9.4% to 10.3% in 2011, outpacing house’s demand growth forecast of 9.4%.

Deutsche Bank adds, constructive over longer term given likely supply shortage starting in 2012. Downgrades Yang Ming Marine (2609.TW) to Sell From Buy, raises target to HK$16.00 ($2.8) from HK$14.80.

Downgrades Hanjin Shipping (117930.SE) downgraded to Sell from Hold, cuts target to KRW28,060 ($31.9) from KRW33,900.

Raises OOIL (0316.HK) target to HK$77.00 from HK$75.00, trims CSCL (2866.HK) target to HK$3.56 vs HK$3.90, raises Evergreen (2603.TW) target to NT$27.20 ($1.16) vs NT$25.60; rates all at Buy on view they are secular growth names for longer term, trade at undemanding valuations.

Raises Wan Hai (2615.TW) target to NT$21.80 vs NT$17.40, cuts NOL (N03.SG) target to $2.06 vs $2.18; rates both Hold. Rates China Cosco (1919.HK) at Hold, target HK$7.60.