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Citi downgraded Fibra MTY SAPI de CV (FMTY14:MM) from buy to neutral on Thursday, while raising its price target to 14 pesos from 12 pesos per share.
The Mexican real estate investment trust has seen its stock climb 24% year-to-date, outperforming Citi’s other Mexican real estate coverage stocks, which have risen 12% on average. According to Citi, the company’s inclusion in the FTSE Total (EPA:TTEF) Cap indices in early March appears to have catalyzed the stock’s performance.
Citi noted that Fibra MTY is more dependent on sale-leaseback transactions as its primary growth strategy compared to other companies in its coverage universe. The downgrade comes as the firm anticipates increased competition in this segment.
On Tuesday, June 10, 2025, private competitor FINSA announced the launch of a $500 million vehicle specifically dedicated to sale-and-leaseback strategies. This development could potentially compress capitalization rates on acquisitions, according to Citi’s analysis.
Despite the downgrade, Citi raised its price target for Fibra MTY to 14 pesos from the previous target of 12 pesos, reflecting the stock’s recent performance while expressing caution about future growth prospects.
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