Tupperware Tumbles on Morgan Stanley Downgrade
Tupperware Brands Corp. (TUP), the direct seller of household storage containers, fell the most in more than nine months after Morgan Stanley downgraded the stock, saying foreign-currency exchange rates may hurt earnings.
Tupperware dropped 4 percent to $76.10 at the close in New for the biggest decline since June 1. The Orlando, Florida-based company’s shares had gained 24 percent this year through March 8, compared with an 8.8 percent gain for the Standard & Poor’s 500 Index.
With 90 percent of its sales outside of the U.S. and 61 percent in emerging economies, any material change in the dollar would have a significant impact on Tupperware, Dara Mohsenian, an analyst at Morgan Stanley in New York, wrote in a note on March 8. She cut her rating on the shares to equal-weight, the equivalent of a hold.
Tupperware also raised its dividend 72 percent and announced a $2 billion share buyback in January, removing the possibility of returning more cash to shareholders as a catalyst to spur the stock, Mohsenian wrote.
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