BBB Foods (NYSE:TBBB) Rating Increased to Outperform at Itau BBA Securities

Key Points

• Itau BBA upgraded BBB Foods (TBBB) to an "outperform" rating with a $42.00 price target, implying roughly a 25.2% upside from the company's current price.
• BBB Foods missed the latest quarter with EPS of ($0.49) versus ($0.27) expected and revenue of $1.22B versus $1.24B, and reported weak profitability metrics (negative ROE and a -3.72% net margin), though analysts forecast 0.15 EPS for the year.
• The stock jumped about 5.6% to $33.55 on the news amid elevated volume; analyst sentiment is mixed (four Buys, three Holds, one Sell) with an average target of $39.50.

BBB Foods (NYSE:TBBB - Get Free Report) was upgraded by research analysts at Itau BBA Securities from a "market perform" rating to an "outperform" rating in a note issued to investors on Friday, Marketbeat.com reports. The brokerage currently has a $42.00 price target on the stock. Itau BBA Securities' target price would suggest a potential upside of 25.20% from the company's current price.

TBBB has been the topic of several other reports. Zacks Research raised shares of BBB Foods from a "strong sell" rating to a "hold" rating in a report on Thursday, February 5th. Wall Street Zen cut BBB Foods from a "hold" rating to a "sell" rating in a research report on Saturday, January 17th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of BBB Foods in a research report on Monday, December 29th. UBS Group increased their price target on BBB Foods from $31.00 to $43.00 and gave the company a "neutral" rating in a research note on Friday, February 20th. Finally, Morgan Stanley raised BBB Foods to an "overweight" rating in a report on Wednesday, January 28th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, BBB Foods currently has an average rating of "Hold" and an average target price of $39.50.

BBB Foods Stock Up 5.6%

Shares of TBBB stock traded up $1.79 during mid-day trading on Friday, hitting $33.55. 327,956 shares of the stock traded hands, compared to its average volume of 677,701. BBB Foods has a 52-week low of $23.75 and a 52-week high of $40.09. The stock has a market cap of $3.83 billion, a P/E ratio of -25.42 and a beta of -0.16. The company has a debt-to-equity ratio of 2.21, a current ratio of 0.65 and a quick ratio of 0.39. The stock's fifty day moving average is $35.27 and its two-hundred day moving average is $31.13.

BBB Foods (NYSE:TBBB - Get Free Report) last issued its quarterly earnings data on Wednesday, March 11th. The company reported ($0.49) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.27) by ($0.22). The firm had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.24 billion. BBB Foods had a negative return on equity of 70.82% and a negative net margin of 3.72%. Equities analysts predict that BBB Foods will post 0.15 EPS for the current year.

Institutional Trading of BBB Foods

Several large investors have recently added to or reduced their stakes in TBBB. Caitong International Asset Management Co. Ltd purchased a new position in shares of BBB Foods in the fourth quarter worth about $89,000. Virtu Financial LLC purchased a new stake in BBB Foods in the fourth quarter valued at approximately $399,000. XTX Topco Ltd acquired a new position in BBB Foods in the 4th quarter worth approximately $463,000. Tudor Investment Corp ET AL acquired a new position in BBB Foods in the 4th quarter worth approximately $2,952,000. Finally, Millennium Management LLC raised its position in BBB Foods by 296.5% during the 4th quarter. Millennium Management LLC now owns 778,613 shares of the company's stock worth $25,998,000 after buying an additional 582,262 shares during the last quarter. Hedge funds and other institutional investors own 8.42% of the company's stock.

BBB Foods Company Profile

BBB Foods Inc, through its subsidiaries, operates a chain of grocery retail stores in Mexico. It offers household cleaning, personal hyenine, cosmetics and beauty, pharmacy, and general merchandise products, as well as jellies and desserts, foods and drinks, pet supplies, coffee, tea, chocolates, breads, dry and frozen foods, snacks and sweets, and toilet papers and napkins. The company also provides branded, private label, and spot products. It serves low-to-middle income households through online channels.

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