UPDATE: BMO Capital Markets Downgrades Tupperware Brands on Valuation, Indonesia Risk

In a report published Wednesday, BMO Capital Markets analyst Connie M. Maneaty downgraded the rating on Tupperware Brands Corporation TUP from Outperform to Market Perform, but reiterated the $91.00 price target. In the report, BMO Capital Markets noted, “The shares seem fairly priced, we think there is EPS risk tied to Indonesia and with a $91 target, we think the near-term upside is limited. TUP is up 34% YTD and 57% YoY, and it has increased at twice the rate of the S&P 500 since March (11% vs. 6%). It now trades at 15x forward consensus estimates, in line with its earnings power and 13.5x our $6.30 2014 estimate. TUP operates in over 100 countries, and the breadth of its portfolio cushions the pressure from any one country. However, the top seven markets account for about 50% of sales, and we're not sure TUP's valuation reflects risk in Indonesia (about 8% of sales) where the price of gas has increased 44% and the rupiah is down 9% YTD and 4% since TUP reported 2Q earnings on July 24 as the government tries to address the fiscal issues there.” Tupperware Brands Corporation closed on Tuesday at $85.79.