Carl Zeiss Falls as Kepler Downgrades Shares: Frankfurt Mover

Carl Zeiss Meditec AG dropped the most since May in Frankfurt trading after Kepler Capital Markets said analyst estimates are too high for the maker of ophthalmological equipment.

Carl Zeiss fell 6 percent to 22.49 euros at 4 p.m., giving the Jena, Germany-based company a market value of 1.83 billion euros ($2.4 billion). The stock dropped as much as 6.4 percent, the biggest intraday decline since May 16, in trading that was three times the average for the past three months.

Salesand earnings before interest and tax for the fiscal first-quarter, reported yesterday, rose less than estimated, Maja Pataki, a Zurich-based analyst for Kepler, wrote in a note to investors today. That means analysts will cut estimates for the full year, she said. Investors had expected Carl Zeiss to beat its 2015 earnings target in 2014, Pataki wrote.

“We see very limited upside to our estimates and target over a 12-month period,” she wrote. “We advise to take profits.” She cut her rating to reduce from hold.

Sales were disappointing because of the introduction of new products that caused some customers to delay orders, and because of increased competition, she wrote.

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