A sharp drop in the US prompted Goodbody to cuts its earnings forecast for Swiss-Irish food group Aryzta.
Shares in the bakery group climbed as much as 10pc yesterday - lifted by the wider market and weak earnings.
Overall, underlying earnings at the company fell 6.3pc on a like-for-like basis to €170m in the six months to January.
In Europe, underlying ebitda was €100.7m, up 2.8pc, according to interim results from the group. However, in the North American market, underlying ebitda fell by 23pc to €46.5m, while the rest of the world reported a 3.5pc decline in ebitda to €22.7m.
In the near to medium term, the North American underlying ebitda margin expectation has been revised to high single digits.
Aryzta CEO Kevin Toland said factors impacting upon North American profitability "are being addressed" and the company expects an improved performance in the second half of the year.
Elsewhere, Aryzta said its cost-saving initiative - Project Renew - is "gathering momentum", with cumulative savings of €57.4m since its launch.
Net debt is at its lowest since 2013. The company, which bakes burger buns for McDonald's, saw revenue fall 3.2pc to €1.65bn during the period.
Looking to the full year, the company expects earnings to improve year-on-year, assuming no material or prolonged impact from the coronavirus.
Analysts at Goodbody Stockbrokers said they are likely to lower Aryzta's full-year earnings forecast by around 4pc, largely due to the group's "challenging performance and outlook" in North America.