Goodbody Stockbrokers has downgraded Waterford Wedgwood shares to a "sell" from an "add" in the wake of last week's poor full-year results, writes Jane O'Sullivan, Markets Correspondent.

The broker has also set a 12-month price target of 12 cents for the shares, which rose 27 per cent this week to close last night at €0.19, saying they are too reliant on external factors.

"Based solely on the value of the equity and separate from any change in the dollar-euro exchange rate, we believe that the shares are overvalued," Goodbody said yesterday.

It noted that the company's earnings and valuations were highly sensitive to currency movements but added that, for interested investors, there were better ways to play the dollar than complicating it with equity risk.

The broker's pessimism on Waterford Wedgwood follows the release of poor results last week, showing a pre-tax loss of €45 million in the year to the end of March.

Earlier this week, company broker Davy described the risk/reward ratio in the shares as "attractive", noting they factored in little of the company's upside potential.

But other brokers share Goodbody's caution. On Thursday, Merrion said it was maintaining an "avoid" rating on the shares.

Separately, Waterford Wedgwood said that Mr Chris McGillivary, the 57-year old chief executive and president of its US operations, had decided to retire early.

Waterford Crystal chief executive John Foley will add responsibility for Waterford Wedgwood in the US to his current role.