Waterford Wedgwood: stockbroker keeps “avoid” recommendation

Merrion Stockbrokers is maintaining its “avoid” recommendation on Waterford Wedgwood stock in advance of the June release of 2003 results.
Merrion says that while Waterford has the flexibility to man…

Merrion Stockbrokers is maintaining its “avoid” recommendation on Waterford Wedgwood stock in advance of the June release of 2003 results. Merrion says that while Waterford has the flexibility to manage its debt through the current economic difficulties, forecasting when the company might begin to recover is more difficult. Waterford shares have lost half their value since the start of 2003, as falling worldwide demand for luxury consumer goods hits earnings. The outlook for 2004 is also “highly uncertain” in all of Waterford“s markets, say Merrion. The broker cites a largely unhedged exposure to the declining US Dollar. Merrion does not exclude a pre-Christmas rise in business, however, but says further deterioration is also a “credible” possibility.