Shares in Swiss-Irish bakery group Aryzta fell to a record low on Tuesday after an analyst from Credit Suisse downgraded the stock.
The Cuisine de France and Otis Spunkmeyer owner saw shares on its Swiss listing fall 7.14 per cent on strong volume. In Ireland, the company fell 7.98 per cent to €12.45. Shares had traded lower earlier in the day.
Aryzta, which also supplies buns to clients including McDonald's, had one of its worst days since it began trading almost 10 years ago as Credit Suisse analyst Alan Erskine suggested the company may be "forced" to sell assets and that he no longer sees a profit recovery.
Mr Erskine downgraded the company’s price target on its primary Swiss listing to 12 Swiss francs, down from 25 Swiss francs. He also downgraded the rating to “underperform” from “neutral”.
The beleaguered food group last month issued a fresh profit warning, prompting concerns about its new management’s ability to restructure the group and uphold its banking covenants.
