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Tecnoglass (NYSE:TGLS) late Tuesday was downgraded to Hold from a previous investment rating of Buy among analysts at financial-services firm Stifel. They said the Colombian maker of building products is likely to report lower earnings than they previously expected.
The stock fell about 9% on Wednesday.
“While we remain positive on the company longer term, we see multiple headwinds developing over the near term,” Stanley Elliott, analyst at Stifel, said in a February 13 report. “Notably, channel checks indicate that fourth-quarter 2023 volumes fell more than 10%, which could impact revenues by more than $10 million and adjusted ebitda by more than $5 million, by our estimates.”
Additional risks include the appreciation of the Colombian peso in relation to the U.S. dollar.
Stifel lowered its price target on Tecnoglass (TGLS) to $45 a share from $48 a share previously, based on an estimated enterprise value that’s 6 times earnings before interest, taxes, depreciation and amortization for 2025.