Fomento Economico Mexicano SAB, Latin America’s largest Coca-Cola bottler, dropped the most in two weeks after Banco Santander SA cut its recommendation.
Femsa shares declined 1.4 percent to 63.56 pesos at 11:59 a.m. New York time. The stock fell as much as 1.8 percent, the biggest intraday decline since Sept. 21.
The company was cut to “hold” from “buy” at Banco Santander SA, according to a report by analysts led by Luis Miranda.
“The recommendation cut may have been an important factor in the fall at this exact moment,” said Ana Paula Pedroni, an analyst with IXE Grupo Financiero SAB in Mexico City. “Investors haven’t been able to identify a significant catalyst to boost the price of the shares in the short term.”
Pedroni rates Femsa a “buy” with a target price of 71 pesos per share.
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