Fomento Economico Mexicano (NYSE:FMX) Upgraded to Buy at Bank of America

Key Points

• Bank of America upgraded FEMSA to “buy” from “neutral” and set a $150 price target, implying 19.35% upside from the prior close.
• Analyst sentiment is broadly positive: FMX has a consensus rating of “Moderate Buy” and an average price target of $123.86, with UBS and JPMorgan also raising their targets.
• FEMSA reported quarterly earnings of $0.93 per share on $13.20 billion in revenue, while institutional investors own approximately 61% of the company’s stock.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) was upgraded by investment analysts at Bank of America from a "neutral" rating to a "buy" rating in a note issued to investors on Tuesday, Marketbeat reports. The brokerage currently has a $150.00 price target on the stock. Bank of America's price objective indicates a potential upside of 19.35% from the stock's previous close.

A number of other research firms have also commented on FMX. UBS Group lifted their target price on Fomento Economico Mexicano from $122.00 to $139.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. Weiss Ratings raised Fomento Economico Mexicano from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, May 11th. Wall Street Zen cut Fomento Economico Mexicano from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Zacks Research upgraded Fomento Economico Mexicano from a "hold" rating to a "strong-buy" rating in a report on Thursday, April 30th. Finally, JPMorgan Chase & Co. upped their target price on shares of Fomento Economico Mexicano from $117.00 to $126.00 and gave the company an "overweight" rating in a research note on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $123.86.

Fomento Economico Mexicano Price Performance

FMX opened at $125.68 on Tuesday. Fomento Economico Mexicano has a 12-month low of $83.08 and a 12-month high of $141.47. The company has a market cap of $43.43 billion, a price-to-earnings ratio of 25.14, a price-to-earnings-growth ratio of 0.69 and a beta of 0.40. The stock has a fifty day simple moving average of $126.44 and a two-hundred day simple moving average of $117.26. The company has a current ratio of 1.14, a quick ratio of 0.85 and a debt-to-equity ratio of 0.41.

Fomento Economico Mexicano (NYSE:FMX - Get Free Report) last issued its quarterly earnings results on Tuesday, June 30th. The company reported $0.93 earnings per share for the quarter. The firm had revenue of $13.20 billion during the quarter. Fomento Economico Mexicano had a return on equity of 8.38% and a net margin of 3.60%. Research analysts predict that Fomento Economico Mexicano will post 6.19 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Contravisory Investment Management Inc. bought a new stake in shares of Fomento Economico Mexicano during the 2nd quarter valued at about $320,000. Assenagon Asset Management S.A. bought a new position in shares of Fomento Economico Mexicano in the 2nd quarter worth approximately $2,411,000. Confluence Investment Management LLC boosted its holdings in shares of Fomento Economico Mexicano by 9.2% in the second quarter. Confluence Investment Management LLC now owns 2,979 shares of the company's stock worth $381,000 after buying an additional 252 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Fomento Economico Mexicano by 46.3% in the first quarter. NewEdge Advisors LLC now owns 6,016 shares of the company's stock worth $668,000 after buying an additional 1,905 shares during the last quarter. Finally, Summitry LLC grew its position in Fomento Economico Mexicano by 3.3% during the first quarter. Summitry LLC now owns 6,606 shares of the company's stock valued at $734,000 after buying an additional 208 shares during the period. 61.00% of the stock is owned by hedge funds and other institutional investors.

Fomento Economico Mexicano Company Profile

Fomento Económico Mexicano, SAB. de C.V. (FEMSA) is a Mexican multinational company active primarily in the retail and beverage sectors. Headquartered in Monterrey, Mexico, FEMSA's operations span convenience store retailing, beverage bottling and distribution, and related logistics and consumer services. The company's business model combines high-frequency retail outlets with large-scale beverage production and a regional supply chain network.

FEMSA Comercio, the company's retail arm, operates a large chain of convenience stores under the OXXO brand and has expanded its retail footprint with complementary formats and services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.