UK: C&C sees share rating cut twice
C&C Group has had its share rating cut by two different brokers in the same week.
The Irish drinks company has seen its coverage downgraded this week by both Credit Suisse and Morgan Stanley, following recent profit warnings.
Credit Suisse has cut its rating on C&C from 'outperform' to 'neutral' with a target price cut to EUR7.20 (US$9.84) from EUR12. Meanwhile, Morgan Stanley downgraded the drinks company from 'overweight' to 'equal-weight' with a target price cut to EUR6 from EUR10.5.
The news follows a second profit warning earlier this week from the Irish drinks producer, which owns Magners cider brand. Operating profit for the six months to the end of August will now come in around 35% down on the same period a year earlier, C&C said. The warning follows a similarly gloomy forecast from C&C last month, when it said its second quarter would be "weak".
The company blamed the poor weather conditions and increased competition in the UK for a deterioration in cider sales volumes in the country during the second half of July. Manufacturing and marketing costs were also highlighted as being "substantially higher".
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