The puny euro was taking down another U.S. corporate giant Thursday, as
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.
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
and one last week from chemicals giant
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.