UPDATE: Credit Suisse Downgrades Cnova NV On Continued USD Vs. Euro Shifts

In a report published Wednesday, Credit Suisse analyst Stephen Ju downgraded the rating on

from Outperform to Underperform, and lowered the price target from $8.00 to $7.00. In the report, Credit Suisse noted, "Setting aside the disappointing miss-and-lower first earnings report as a public company, our change in investment stance is more a function of the ongoing moves of the US Dollar against the Euro. As we have noted previously, CNV reports its financial results in Euros but its shares trade in US Dollars so our valuation parameters are more sensitive to USD/EUR exchange rate fluctuations and the ensuing translational impact. With that in mind, we have moved our end-of-2015 USD/EUR exchange rate assumption to 1.02 (vs. 1.15 prior) consistent with the updated CS Fixed Income Research twelve month forecast given monetary policy changes expected from the Federal Reserve and the European Central Bank. As a result of the -11% change in exchange rate our price target resets lower to $7 versus $8 prior; and with potential upside apparently capped as a result, we believe CNV shares will underperform relative to other names in our coverage universe." Cnova NV closed on Tuesday at $6.25.