BUZZ-Varta slumps after GS cuts to 'sell' on 'structural challenges'
** Shares in Varta are down more than 10% after Goldman Sachs cut the German battery maker to "sell" from "neutral"
** The brokerage believes Varta "continues to face structural challenges" with overcapacity for the company's most profitable product, the CoinPower battery cell
** "We see risks that sales and EBITDA could fall short of guidance this year...as it implies a steep recovery in CoinPower volumes in 2H, which depends on uncertain call-off decisions from customers," it says
** GS adds elevated leverage remains a constraint on expansion opportunity, which may "prove a disadvantage" in the current battery race
** It notes Varta shares have fallen 76% since May last year driven by negative earnings revisions, with the company underperforming pan-European STOXX 600 index as well as battery peers CATL and LG Energy Solution
** Varta hits the bottom of the German small-cap index <.SDAXI>
(Reporting by Anna Mackenzie)
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