UPDATE: Citigroup Lowers PT On CEDC TO $17

Citigroup has published a research report on Central European Distribution Corporation CEDC after participating in the company's most recent conference call.

In the report, Citigroup writes "After CEDC published 4Q10 results on March 2011, the shares shed ~45% in a little over a week. The collapse went beyond the 4Q10 EPS miss ($0.17/share vs. consensus $1.09) caused by a combination of failed execution and one-off factors. Reduced FY11 guidance (at the midpoint, FY11 EPS target was ~28% below initial FY10 expectations) explained much of the fall, in our view. However, we believe a combination of an absence of a profit warning after what we would have considered a material event in November, director share sales in December, an ill-timed change of auditors and the technical breach of debt covenants resulting from a poor quarter also contributed."

Citigroup maintains its Buy rating and has lowered the price target from $38 to $17 based on valuation.

CEDC closed Friday at $12.61.