Meritor Shares Sink As Piper Jaffray Downgrades To Underweight

Meritor Inc MTOR shares plunged more than 10 percent on Tuesday following a downgrade from Piper Jaffray analyst Alexander Potter. The analyst lowered his rating on shares from Neutral to Underweight and lowered the price target from $6.50 to $6.

Potter cited "the potential for Brexit related fallout and continued downward forecast revisions in the U.S. truck market."

"MTOR derives around 20% of revenue from Europe, which until recently we would have viewed favorably. But now, with uncertainty in Europe and a general risk-off attitude amongst investors, we think MTOR is likely to fall out of favor," according to Potter.

Meritor shares last traded at $6.38.