Euro Squeeze Continues as Colgate Gets Flattened - TheStreet

Euro Squeeze Continues as Colgate Gets Flattened

The stock slides 15% following an analyst downgrade.
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The puny euro was taking down another U.S. corporate giant Thursday, as

Colgate-Palmolive

(CL) - Get Report

plunged 15% after a Wall Street analyst downgraded the stock on possible sales weakness.

Colgate was down $8.38 to $47.81 on volume of 4.4 million shares, which is more than twice as many Colgate shares as trade in a normal session. The rout ensued after

Deutsche Banc Alex. Brown

cut the toothpaste juggernaut to market perform from buy, citing currency issues and soaring oil prices. Analyst Andrew Shore slashed his price target to $55 from $62. Colgate wasn't immediately available for comment.

As

TheStreet.com

reported Wednesday, weakness in the European currency -- it has lost nearly a quarter of its value against the dollar in the 21 months since its inception -- is increasingly wreaking havoc on the bottom lines of U.S. multinationals. Colgate's selloff follows a similar warning Wednesday from restaurateur

McDonald's

(MCD) - Get Report

and one last week from chemicals giant

DuPont

(DD) - Get Report

.

And like the McDonald's warning, the Colgate shortfall could raise questions about how companies share information with investors. Regulators have been cracking down on so-called selective disclosure, in which some investors get information before others. In his report, Shore cited recent conversations with management.

Analysts surveyed by

First Call/Thomson Financial

expect Colgate to earn 43 cents a share for the third quarter. Deutsche Banc Thursday stuck with that number, citing the offsetting effect of a reduced tax rate.