BBB Foods (NYSE:TBBB) Stock Price Up 6.3% After Analyst Upgrade

Key Points

• Itau BBA upgraded BBB Foods to "Outperform" with a $42 price target, propelling the stock up 6.3% to about $33.77 on Friday amid unusually light volume (≈98,898 shares, down 85% vs. average).
• BBB Foods missed quarterly expectations, reporting EPS of ($0.49) vs. ($0.27) expected, and showed weak fundamentals including a negative net margin (−3.72%), negative ROE (−70.82%) and high leverage (debt/equity 2.21).
• Analyst views are mixed—four Buys, three Holds and one Sell—leaving a MarketBeat consensus rating of "Hold" with a consensus target price of $39.50 (other firms' targets range up to $42–$43).

BBB Foods Inc. (NYSE:TBBB - Get Free Report) shares rose 6.3% during trading on Friday after Itau BBA Securities upgraded the stock from a market perform rating to an outperform rating. Itau BBA Securities now has a $42.00 price target on the stock. BBB Foods traded as high as $33.82 and last traded at $33.7660. Approximately 98,898 shares traded hands during trading, a decline of 85% from the average daily volume of 672,974 shares. The stock had previously closed at $31.76.

Other research analysts have also issued research reports about the company. Zacks Research raised BBB Foods from a "strong sell" rating to a "hold" rating in a report on Thursday, February 5th. UBS Group lifted their price objective on shares of BBB Foods from $31.00 to $43.00 and gave the company a "neutral" rating in a research report on Friday, February 20th. Wall Street Zen cut shares of BBB Foods from a "hold" rating to a "sell" rating in a research note on Saturday, January 17th. Weiss Ratings restated a "sell (d+)" rating on shares of BBB Foods in a research report on Monday, December 29th. Finally, Morgan Stanley raised shares of BBB Foods to an "overweight" rating in a report on Wednesday, January 28th. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, BBB Foods presently has a consensus rating of "Hold" and a consensus target price of $39.50.

Institutional Investors Weigh In On BBB Foods

A number of hedge funds and other institutional investors have recently bought and sold shares of TBBB. Farther Finance Advisors LLC boosted its position in shares of BBB Foods by 92.5% during the 4th quarter. Farther Finance Advisors LLC now owns 824 shares of the company's stock worth $28,000 after purchasing an additional 396 shares in the last quarter. Osaic Holdings Inc. purchased a new position in shares of BBB Foods in the 2nd quarter valued at about $25,000. Larson Financial Group LLC lifted its stake in shares of BBB Foods by 547.9% in the third quarter. Larson Financial Group LLC now owns 1,056 shares of the company's stock valued at $28,000 after purchasing an additional 893 shares during the period. Smartleaf Asset Management LLC acquired a new stake in shares of BBB Foods in the fourth quarter valued at about $39,000. Finally, Toth Financial Advisory Corp purchased a new stake in BBB Foods during the third quarter worth about $33,000. Institutional investors and hedge funds own 8.42% of the company's stock.

BBB Foods Trading Up 6.3%

The company has a quick ratio of 0.39, a current ratio of 0.65 and a debt-to-equity ratio of 2.21. The business's fifty day moving average is $35.27 and its 200 day moving average is $31.13. The stock has a market cap of $3.86 billion, a PE ratio of -25.59 and a beta of -0.16.

BBB Foods (NYSE:TBBB - Get Free Report) last issued its earnings results 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). BBB Foods had a negative net margin of 3.72% and a negative return on equity of 70.82%. The company had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.24 billion. As a group, analysts predict that BBB Foods Inc. will post 0.15 earnings per share for the current year.

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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