PPR, the Paris-based conglomerate, saw its stock price drop after Credit Suisse analyst Tony Shiret downgraded the stock from "outperform" to "neutral" in his analyst report released yesterday. Shiret reduced his target price for PPR stock by 27% from 144 euros to 105 euros and the stock closed at 110.63 euros in Paris, down 4% for the day and the lowest price since January. According to Shiret
The group is becoming less, rather than more, strategically focused. We continue to feel uneasy about the widening scope of the business.
Shiret noted that as he tried to do forecasts for PPR going forward, he was struck by how many parts there are to the business. In particular, the report singles out Redkats, Conforama and United Retail as underperforming businesses that are dragging down earnings. Adding to the confusion are persisting reports about a forthcoming PPR acquisition of Clarins, as reported on The Business of Fashion last week. Some analysts say another acquisition is the last thing PPR needs.