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Steinhoff Share-Price Collapse Blindsides Optimistic Analysts

  • Company rocked by accounting scandal had high stock ratings
  • Market capitalization has plummeted by EU15 billion since June
Bloomberg business news

Steinhoff Bonds Tumble on Moody's Cut to Junk

Investors shocked at the money they’re losing on positions in Steinhoff International Holdings NV have a lot of company in the analyst community.

The shares fell as much as 62 percent on Wednesday after Chief Executive Officer Markus Jooste resigned amid a probe of accounting irregularities. The market value of the furniture retailer, which is based in South Africa but listed in Germany, has dropped to 4.5 billion euros ($5.3 billion) from about 20 billion euros in June. Still, through Tuesday, Steinhoff was among the stocks on which equity analysts were most bullish.