Deutsche Bank Downgrades Fomento Economico Mexicano (FMX) to Hold; Sideways for Next 12 Months

Deutsche Bank downgraded Fomento Economico Mexicano (NYSE: FMX) from Buy to Hold with a price target of $90.00 (from $85.00).

Deutsche analyst said, "FMX has remained strong (despite weakness in traded sub Coca-Cola FEMSA (NYSE: KOF)) on the back of stellar performance at its Oxxo unit, but even after raising our Oxxo estimates to reflect this, we come to the conclusion that FMX valuations are now a bit ahead of fair value and consequently see little upside over the next 12 months. In addition, we believe that potential corporate actions could further complicate matters. We continue to believe that FMX can deliver returns of ~15% per annum without any re-rating, but the YTD total return of 30% suggests that the stock could go sideways for a year."

For an analyst ratings summary and ratings history on Fomento Economico Mexicano click here. For more ratings news on Fomento Economico Mexicano click here.

Shares of Fomento Economico Mexicano closed at $89.52 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Deutsche Bank Downgrades Tesla (TSLA) to Hold, 'Considerable risk from “going balls to the wall for autonomy”'
• Stifel Downgrades Shield Therapeutics PLC (STX:LN) to Hold
• Keefe, Bruyette & Woods Downgrades U.S. Bancorp (USB) to Market Perform