Goldman Sachs downgrades Grupo Mexico stock to Neutral on reduced upside

Published 18/09/2025, 07:46
Goldman Sachs downgrades Grupo Mexico stock to Neutral on reduced upside

Investing.com - Goldman Sachs downgraded Grupo Mexico SAB de CV (BMV:GMEXICOB) (OTC:GMEX) from Buy to Neutral and lowered its price target to 130.00 pesos from 135.00 pesos.

The downgrade follows Grupo Mexico’s significant outperformance, with shares rising 58% year-to-date compared to 21% for Southern Copper Corporation, in U.S. dollar terms.

Goldman Sachs noted that the NAV price asymmetry to Southern Copper has "materially reduced" following the share price gains, which the firm believes were strengthened by reduced capital allocation concerns.

The investment bank highlighted management’s commentary during the second-quarter 2025 earnings call, where Grupo Mexico stated it would "solely pursue investment in its core business," alleviating previous concerns about potential investments in non-core assets.

Goldman Sachs calculated that Grupo Mexico’s holding discount has narrowed substantially to 37% from highs of 56% in mid-2024, with current levels broadly in line with 10-year historical rates.

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