Shares of Tupperware Brands Corp., 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.
© Copyright 2015 Bloomberg News. All rights reserved.