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Investing.com - Morgan Stanley (NYSE:MS) downgraded Wal-Mart (NYSE:WMT) de Mexico SAB de CV (BMV:WALMEX) stock rating from Overweight to Equalweight on Monday, while reducing its price target to 57.00 pesos from 71.00 pesos.
The downgrade comes as the Mexican retailer faces uncertainty following the announcement of a CEO change, which Morgan Stanley believes clouds the company’s strategic direction at a critical juncture.
The investment bank specifically cited concerns about Walmex’s ongoing digitalization efforts and investment cycles in labor and pricing strategies during this leadership transition period.
Morgan Stanley also lowered its near-term margin estimates for the company, noting "limited visibility" on when Walmex’s elevated investments will yield returns.
Wal-Mart de Mexico, which trades as WALMEX on the Mexican stock exchange and as (OTC:WMMVY) in the United States, is Mexico’s largest retailer and a subsidiary of Walmart Inc.
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