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UPDATE: Bradesco BBI Downgrades Coca Cola Femsa (KOF) to Neutral

June 1, 2022 3:40 AM EDT
Get Alerts KOF Hot Sheet
Price: $73.23 --0%

Rating Summary:
    5 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 25 | New: 9
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(Updated - June 1, 2022 4:03 AM EDT)

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."

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 $59.65 yesterday.


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