** Carl Zeiss Meditec AG's AFXG.DE shares slip around 2% in early Frankfurt trade

** J.P.Morgan places the German optical systems maker on negative catalyst watch into Q2 results on May 14, sticking to its "underweight" rating

** The broker notes the stock rising 35% YTD, adding it struggles to justify the move as the firm sits in the bottom quartile for earnings growth and upper quartile for valuation

** It also highlights the firm's continued underperformance over the past two years and fears market share losses in China and the U.S.

** Carl Zeiss Meditec falls to the bottom of Germany's midcaps index .MDAXI

(Reporting by Tristan Veyet)

((Tristan.chabba@thomsonreuters.com))