UBS upgrades Arca Continental stock to Buy on growth outlook

Published 19/08/2025, 05:08
UBS upgrades Arca Continental stock to Buy on growth outlook

Investing.com - UBS has upgraded Arca Continental SAB de CV (BMV:AC) (OTC:EMBVF) from Neutral to Buy while raising its price target to 240 pesos from 220 pesos.

The upgrade is based on three key factors, including Arca Continental’s ability to meet mid-term revenue growth targets of 6-8% through solid price/mix strategies and steady volume growth.

UBS also cited continued margin expansion supported by disciplined revenue management and efficiency gains as reasons for the more positive outlook on the Mexican beverage company.

The third factor supporting the upgrade is improving returns on invested capital, which UBS believes reinforces the case for a multiple re-rating of the stock.

At UBS’s updated estimates, Arca Continental trades at 13.7x 2026 estimated earnings, approximately 12% below its five-year average of 15.5x, which the firm considers too conservative given the company’s solid track record and outlook.

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