STOCKS NEWS EUROPE-Tod's hit by earnings view, SG target cut

Shares in Tod's fall as much as 8 percent to near four-month lows in heavy volume after the Italian luxury shoemaker's third-quarter results, which prompt Societe Generale (Paris: FR0000130809 - news) to lower its price target on the stock.

Tod's is the most actively traded stock in the blue-chip FTSE MIB (Milan: FTSEMIB.MI - news) , with demand at nearly six times its 90-day daily average, against 70 percent for the broader index.

Lacklustre results and economic woes at home led the company to say on Wednesday, after the close, that the market's core earnings consensus this year of 266 million euros would be hard to reach. As a result SocGen cuts its target price on the stock to 98 euros from 105 euros, confirming its 'sell' rating.

Speaking about the results, an analyst at an Italian bank says the scale of the move was not unexpected: "Consensus estimates will be revised down and the stock was expected to react negatively.

"Fourth-quarter sales should be something unheard of for the full-year consensus forecast to be met. It won't happen," the analyst, who declines to be named as she is not allowed to talk to the press, adds.

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