Linde AG's share price plunged last week after the Deutsche Bank, citing weakness in Linde's forklift business, downgraded its rating.

Deutsche Bank cut Linde's rating from "buy" to "hold" last Tuesday, changing its price target for the company from EUR40 (USD42.88) to EUR29 (USD31.09). Linde stock fell 6.6 percent to EUR27.21 (USD29.17).

Linde this month posted a 15 percent drop in financial performance for 2002, citing underperformance in its refrigeration and forklift businesses. The materials handling business, which accounts for a third of group sales, suffered as industrial clients postponed orders, while the refrigeration unit suffered as retailers cut spending.

"If Deutsche Bank cuts a stock it has a certain weight, particularly if it's a big cut like this," one Frankfurt trader told Reuters News.

Deutsche said restructuring in materials handling, including plant closures and more outsourcing, was welcome, but the short-term outlook was poor, particularly if the German economy slipped into recession.