OSLO (Reuters) - Shares in Norwegian Air Shuttle (OL:NWC) lost more than a quarter of their value on Friday after Pareto Securities cut its rating on the stock, citing concerns about its ability to cope with a dramatic drop in travel demand as the coronavirus spreads.
At 1040 GMT, the shares were down almost 27% at 11.65 Norwegian crowns ($1.26).
The stock has fallen almost 70% since the start of February as the virus spread to Europe and the United States, forcing carriers to cut flights and costs, and warning of a hit to earnings.
"For (Norwegian Air), the situation it is likely to wipe out a stellar start of the year and a prolonged crisis might require equity refill as the cash buffer is slim," analyst Kenneth Sivertsen said in a note.
He cut the stock to 'hold' from 'buy' and slashed its price target to 15 NOK from 50.
Norwegian Air declined to comment.