Credit Suisse Downgrades CDC's Rating to Underperform

In a report published by Credit Suisse, Central European Distribution Corporation CEDC has been downgraded on the back of poor execution and weak profitability.

Credit Suisse reported that it revisits its fundamental view and model assumptions for CEDC post disappointing 2010 results. “We assume a further discount to company guidance, given concerns on the robustness of guidance and downgrade our '11-15e EBITDA forecasts by c 40% pa and our EPS forecasts by c. 70% p.a. Model revision results in a 60% decrease of target price to US$ 12 per share and rating downgrade to Underperform (from Outperform).”

Central European Distribution closed yesterday at $13.73.