RBC cuts Carl Zeiss rating on weak demand concerns
** RBC cuts Carl Zeiss AFXG.DE to "sector perform" from "outperform", citing uncertainty around demand in its end markets; brokerage to switch to a shorter-term focus
** It views the German optical systems maker as a market leader but co also affected by weak demand that has defied prediction
** "We expect this demand weakness to continue into 2025, and therefore bring down expectations for revenue growth with a commensurate impact on EBIT, leading to a 21.5% impact to EPS" - RBC
** RBC sees the possibility of consensus coming down when FY results are published on Dec. 11
** The 2025 consensus implies fairly optimistic organic revenue growth scenario, which brokerage struggles to justify based on information currently available
** AFXG down 42% YTD
Reporting by Paolo Laudani
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