Fomento Economico Mexicano SAB (FMX) Stock Rating Upgraded by Zacks Investment Research
Fomento Economico Mexicano SAB (NYSE:FMX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “FEMSA reported a strong third-quarter 2016 as both net income and revenue improved year over year. The company’s top-line also beat our estimates backed by strength across all segments. Net income gained from increase in operating income and Heineken’s results. However, adverse currency effects, along with higher interest and non-operating costs weighed on the results. Moreover, FEMSA continued to witness margin pressures due to the incorporation and growth of lower-margin businesses in FEMSA Comercio’s Health and Fuel divisions. We believe the persistence of these headwinds and regulatory pressure may hurt future results. Nonetheless, FEMSA is on track to drive growth through its strategic measures like increasing store count, diversifying its business portfolio and focusing on core business activities. The company’s strong cash flow generation capacity enables it to make incremental investments in business expansion.”
Several other brokerages have also recently commented on FMX. HSBC upgraded shares of Fomento Economico Mexicano SAB from a “hold” rating to a “buy” rating in a research report on Wednesday, August 10th. Barclays PLC reiterated a “buy” rating and set a $110.00 target price on shares of Fomento Economico Mexicano SAB in a research report on Tuesday, July 19th.
Shares of Fomento Economico Mexicano SAB (NYSE:FMX) opened at 81.61 on Thursday. Fomento Economico Mexicano SAB has a 12 month low of $77.90 and a 12 month high of $101.48. The firm has a market cap of $29.20 billion, a PE ratio of 27.85 and a beta of 0.77. The firm has a 50 day moving average price of $93.74 and a 200-day moving average price of $92.14.
A number of institutional investors have recently added to or reduced their stakes in FMX. AMP Capital Investors Ltd boosted its position in Fomento Economico Mexicano SAB by 40.7% in the first quarter. AMP Capital Investors Ltd now owns 112,325 shares of the company’s stock worth $10,851,000 after buying an additional 32,500 shares during the period. Baker Ellis Asset Management LLC boosted its position in Fomento Economico Mexicano SAB by 0.6% in the second quarter. Baker Ellis Asset Management LLC now owns 24,871 shares of the company’s stock worth $2,300,000 after buying an additional 150 shares during the period. Capital Fund Management S.A. boosted its position in Fomento Economico Mexicano SAB by 953.0% in the second quarter. Capital Fund Management S.A. now owns 74,763 shares of the company’s stock worth $6,915,000 after buying an additional 67,663 shares during the period. Deltec Asset Management LLC boosted its position in Fomento Economico Mexicano SAB by 833.3% in the second quarter. Deltec Asset Management LLC now owns 28,000 shares of the company’s stock worth $2,590,000 after buying an additional 25,000 shares during the period. Finally, Quantbot Technologies LP purchased a new position in Fomento Economico Mexicano SAB during the second quarter worth about $231,000. Hedge funds and other institutional investors own 21.40% of the company’s stock.
About Fomento Economico Mexicano SAB
Fomento Economico Mexicano, SAB. de C.V. (FEMSA) is a holding company. The Company’s segments are Coca-Cola FEMSA, FEMSA Comercio-Retail Division and FEMSA Comercio-Fuel Division. The Company conducts its operations through holding companies, such as Coca-Cola FEMSA, SAB. de C.V. and subsidiaries (Coca-Cola FEMSA), which produces, distributes and sells beverages; FEMSA Comercio, SA de C.V.
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