UPDATE: Bradesco BBI Downgrades Coca Cola Femsa (KOF) to Neutral
- Futures fall with eyes on earnings
- Public Storage (PSA) makes an $11 billion unsolicited offer for Life Storage (LSI)
- Goldman reacts positively to Newmont's new $17 billion bid for Newcrest Mining
- Catalent surges over 20% on Danaher takeover interest, Wall Street mixed on deal
- Dell (DELL) to cut 5% of its global workforce, COO sees more uncertainty
Bradesco BBI analyst Leandro Fontanesi downgraded Coca Cola Femsa (NYSE: KOF) from Outperform to Neutral with a price target of $60.00.
The analyst comments "KOF is FEMSA’s listed subsidiary that is a franchisee of the Coke system in LatAm. The stock has slightly outperformed the MEXBOL 5pp YTD, and we now see no TP upside. KOF is trading at a 1-yr fwd. P/E of ~15x, which does not seem particularly attractive, and implies ~15% discount to the historical levels. Volumes are at 8% above pre-pandemic levels, and we expect growth to moderate to ~2% YoY in 2H22 and ~1% in 2023, after growing 5% in 2021 and 7% YoY in 1H22. Upside risks: acquisition of other unlisted Coke bottlers or of other beer brands, as KOF looks to expand in this segment."
Shares of Coca Cola Femsa closed at $59.65 yesterday.
You May Also Be Interested In
- Citi Downgrades PagSeguro (PAGS) to Neutral
- Raymond James Upgrades Landstar System (LSTR) to Outperform
- Roth Capital Resumes Clene, Inc. (CLNN) at Buy, PT $10
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!