Fomento Economico Mexicano’s Neutral Rating Reaffirmed at Zacks (FMX)
Fomento Economico Mexicano (NYSE:FMX)‘s stock had its “neutral” rating reiterated by Zacks in a research report issued to clients and investors on Tuesday. They currently have a $100.00 price objective on the stock. Zacks‘s price target would suggest a potential upside of 4.84% from the company’s current price.
Zacks’ analyst wrote, “We are disappointed with FEMSA’s lackluster bottom-line results for second-quarter 2014. The company’s earnings were mainly battered by a fall in Heineken’s second-quarter 2014 net income, increased financing expenses resulting from the bonds issued by Coca-Cola FEMSA and unfavorable foreign exchange rates. Further, we believe that continued regulatory pressure can lead to significant attrition in the Mexican soda market, which can have a material impact on FEMSA’s business. Despite all these negative factors, we have maintained our Neutral recommendation on the stock as we are optimistic about the company’s initiatives directed toward top-line growth. We note that FEMSA has been diversifying its retail chain format operations and acquiring businesses across Latin America. Moreover, the company has been aggressively expanding its store base which we believe will help it in boosting its top-line.”
Fomento Economico Mexicano (NYSE:FMX) traded down 0.45% on Tuesday, hitting $94.95. 92,960 shares of the company’s stock traded hands. Fomento Economico Mexicano has a 52-week low of $82.36 and a 52-week high of $106.07. The stock’s 50-day moving average is $95.32 and its 200-day moving average is $92.85. The company has a market cap of $33.975 billion and a P/E ratio of 29.17.
Fomento Economico Mexicano (NYSE:FMX) last posted its quarterly earnings results on Friday, July 25th. The company reported $0.65 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.78 by $0.13. On average, analysts predict that Fomento Economico Mexicano will post $3.74 earnings per share for the current fiscal year.
Fomento Economico Mexicano, SAB. de C.V. (NYSE:FMX) is a holding company.
To view Zacks’ full report, visit Zacks’ official website.
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