JPMorgan Downgrades Coca Cola Femsa (KOF) to Neutral

JPMorgan analyst Lucas Ferreira downgraded Coca Cola Femsa (NYSE: KOF) from Overweight to Neutral with a price target of $100.00.

The analyst comments: "We anticipate consolidated top-line growth of 5% y/y in 2026,with EBITDA growth of 6% y/y in 2026 with a 20bps y/y margin expansion. We expect volumes in Mexico to be -3% y/y reflecting the full pass-through to the consumer of the recent excise tax increase on flavored drinks. With this, we expect Mexico & Central America revenues to be +1.9% y/y in 2026 and EBTIDA +3.0% underscoring a view that diversification efforts, particularly within the “zero” segment, efficiency measures and and the advancing of its digital transformation agenda will support profitability despite inflation-like pricing. For 2027, we expect volumes in Mexico to recover to 2024-like levels, +6.5% y/y, reflective of market share gains. Coupled with real pricing in the region, we expect revenues in Mexico and Central America to be +12% y/y next year and EBITDA +14%. Elsewhere, South America should continue to support consolidated results, with most markets showing HSD growth in Ps terms for this and next year. We have slightly revised downwards our KOF EBITDA estimates for this year mainly due to slower South America growth, but upped our 2027 numbers mainly from a more constructive view on Mexico volume recovery."

For an analyst ratings summary and ratings history on Coca Cola Femsa click here. For more ratings news on Coca Cola Femsa click here.

Shares of Coca Cola Femsa closed at $108.58 yesterday.

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