Tupperware Brands Corp. shares fell 8% in early Thursday trading after it was downgraded to neutral from buy at D.A. Davidson. Analysts slashed the price target to $13 from $32. The stock is down more than 37% this week after plunging 32.2% on Wednesday. The food storage company reported a profit and sales miss and withdrew its guidance owing to both external and internal factors. D.A. Davidson expressed concern about the ongoing impact from the war in Ukraine, trouble the company is having with selling excess inventory, and other factors. “We are starting to question management’s judgment in some areas of execution, for example, their decision to proceed with their plan to enter the retail channel in the U.S. in 2H22 despite apparent delays in getting product onto retail shelves in the U.K. and the continuing issues in the core direct selling business,” the analyst note said. “Although only ~10% of sales are in the U.S., we continue to hear
concerns from investors that entering retail stores could result in channel conflict.”
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