Navitas stock soars as company advances 800V tech for NVIDIA AI platforms
Investing.com - JPMorgan upgraded Becle SAB de CV (CUERVO:MM) (OTC:BCCLF) from Underweight to Neutral on Friday, setting a price target of 23.00 Mexican pesos. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 55% and currently trades at an earnings multiple of 12.5x.
The upgrade comes after a 10-month Underweight rating period, with JPMorgan citing a more balanced valuation that better reflects persistent U.S. demand risks. The stock has fallen 25% from its year-to-date high and sits 15% above its March all-time low. InvestingPro analysis suggests the stock is currently undervalued, with strong fundamentals including a free cash flow yield of 12%.
JPMorgan maintains EBITDA estimates approximately 8% below consensus for the next two years, citing ongoing weakness in the U.S. market and uncertainty around margin gains from lower agave costs. The company’s current EBITDA stands at $514 million, with a healthy current ratio of 3.21x indicating strong liquidity.
The firm views the current valuation of 12x P/E 2026E as more sustainable for the mid to long term, despite representing a 40% de-rating compared to historical levels. This assessment factors in structural U.S. headwinds and earnings growth potential relative to the Mexican Consumer universe.
JPMorgan noted an improved outlook in Mexico as a positive factor, while adding that with the structural de-rating now embedded, any positive surprises in earnings or estimates should have a more pronounced impact on stock price performance.
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