BBB Foods (NYSE:TBBB) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded BBB Foods (TBBB) from "hold" to strong sell, even though MarketBeat shows a current consensus of "Hold" with an average target price of $39.50 and a mix of Buy, Hold and Sell analyst ratings.
• In the latest quarter the company reported EPS of ($0.49), missing the ($0.27) estimate and posting slightly below‑estimate revenue, negative net margin and ROE, along with weak liquidity and high leverage (quick ratio 0.35, current ratio 0.62, debt/equity 2.61).
• Shares opened at $34.89 and were trading up about 3.9%; the stock has a market cap of roughly $3.98 billion and a 12‑month trading range of $23.81–$40.09.

BBB Foods (NYSE:TBBB - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Monday,Zacks.com reports.

TBBB has been the topic of a number of other reports. Itau BBA Securities upgraded shares of BBB Foods from a "market perform" rating to an "outperform" rating and set a $42.00 price target on the stock in a research report on Friday, March 13th. UBS Group boosted their price objective on shares of BBB Foods from $31.00 to $43.00 and gave the stock a "neutral" rating in a report on Friday, February 20th. Wall Street Zen raised shares of BBB Foods from a "sell" rating to a "hold" rating in a research note on Saturday, March 14th. Morgan Stanley raised shares of BBB Foods to an "overweight" rating in a report on Wednesday, January 28th. Finally, The Goldman Sachs Group lifted their target price on shares of BBB Foods from $30.00 to $34.00 and gave the stock a "neutral" rating in a research report on Thursday, December 18th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, BBB Foods currently has a consensus rating of "Hold" and an average target price of $39.50.

BBB Foods Trading Up 3.9%

Shares of TBBB stock opened at $34.89 on Monday. The business has a 50-day moving average price of $35.20 and a two-hundred day moving average price of $31.61. BBB Foods has a 12-month low of $23.81 and a 12-month high of $40.09. The company has a quick ratio of 0.35, a current ratio of 0.62 and a debt-to-equity ratio of 2.61. The firm has a market cap of $3.98 billion, a P/E ratio of -26.43 and a beta of -0.16.

BBB Foods (NYSE:TBBB - Get Free Report) last announced its quarterly earnings data on Wednesday, March 11th. The company reported ($0.49) EPS for the quarter, missing the consensus estimate of ($0.27) by ($0.22). The firm had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.24 billion. BBB Foods had a negative net margin of 3.72% and a negative return on equity of 70.80%. Equities analysts anticipate that BBB Foods will post 0.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Capital Research Global Investors raised its position in BBB Foods by 2.6% during the 3rd quarter. Capital Research Global Investors now owns 5,882,050 shares of the company's stock valued at $158,580,000 after purchasing an additional 151,003 shares during the last quarter. Wasatch Advisors LP increased its stake in shares of BBB Foods by 25.7% during the fourth quarter. Wasatch Advisors LP now owns 3,409,281 shares of the company's stock valued at $113,836,000 after buying an additional 696,365 shares during the period. 12 West Capital Management LP increased its stake in shares of BBB Foods by 39.8% during the third quarter. 12 West Capital Management LP now owns 3,382,770 shares of the company's stock valued at $91,199,000 after buying an additional 963,712 shares during the period. Orbis Allan Gray Ltd bought a new position in shares of BBB Foods during the fourth quarter valued at approximately $109,810,000. Finally, 3G Capital Partners LP lifted its stake in BBB Foods by 6.7% in the third quarter. 3G Capital Partners LP now owns 1,600,000 shares of the company's stock worth $43,136,000 after acquiring an additional 100,000 shares during the period. Hedge funds and other institutional investors own 8.42% of the company's stock.

About BBB Foods

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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