Mexichem Declines to Two-Month Low as Credit Suisse Cuts Stock

Mexichem SAB (MEXCHEM*), the world’s biggest producer of a fluorine-rich mineral used in refrigerant, unleaded gasoline and toothpaste, fell to a two-month low as Credit Suisse Group AG lowered it to the equivalent of hold.

The shares fell 1.7 percent to 52.07 pesos at 1:14 p.m. in Mexico City, the lowest level on a closing basis since Nov. 13. The stock has tumbled 30 percent over the past year. The IPC benchmark stock index dropped 0.1 percent today.

Credit Suisse analyst Vanessa Quiroga lowered the stock to neutral from outperform in a research note yesterday on concern refrigerant gas prices will not recover to 2012 levels. The company’s return on invested capital trails U.S. and European competitors while Latin American peers offer “slightly better” growth and returns, the analyst wrote.

“The main issue continues to be the decline in refrigerant gas prices,” Mexichem Chief Executive Officer Antonio Carrillo Rule said on an October conference call with investors. “In Europe, the decline in those prices is also associated with the decline in our volumes.”

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