As Wirecard Stock Crashes, Analysts Finally Pull Buy Ratings
- At least 10 analysts have removed their stock ratings
- Analysts should always be skeptical, LGIM’s Launder says
A car park barrier sits in front of the Wirecard AG headquarters in the Aschheim district of Munich, on June 19.
Photographer: Michaela Handrek-Rehle/BloombergMore than a year after allegations of forgery and fraud at German payments company Wirecard AG, analysts have decided the stock isn’t worth buying -- now that it’s lost more than three-quarters of its value in two days.
As of Wednesday, 10 out of 25 analysts tracked by Bloomberg recommended buying the stock, and the group as a whole saw 49% upside for the shares. Then, Wirecard shocked investors Thursday with the revelation that 1.9 billion euros ($2.1 billion) of cash was missing, sending the shares plunging. Since then, at least 10 analysts have removed their recommendations and three have downgraded the stock to sell. Societe Generale SA withdrew its buy recommendation on Friday afternoon, a spokesperson said by email.