Asahi shares mark weekly slide after cyberattack halts production
Investing.com - UBS upgraded Fomento Economico Mexicano (NYSE:FMX) (FEMSAUBD:MX) from Neutral to Buy while adjusting its price target to 205.00 pesos from 215.00 pesos.
The upgrade follows UBS’s extensive review of Oxxo’s value proposition and strategic relevance in Mexican retail, concluding that market concerns about structural risks to growth and profitability are overstated.
UBS expects Oxxo’s operating trends to improve significantly compared to the past 12 months as cyclical drivers like macroeconomic conditions and weather show early signs of stabilization, with same-store sales potentially recovering to approximately 5% by late 2025 or early 2026.
The firm projects approximately 1,300 new store openings in 2025, driving 4-5% sales-area growth, while forecasting high-single-digit EBITDA CAGR over 2025-2027 versus the market’s expectation of low-single-digit growth.
UBS views FEMSA Retail’s implied valuation of 8x 2026 estimated EBITDA as attractive and identifies upcoming same-store sales figures in earnings reports as the next likely catalyst for the stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.