Fomento Economico Mexicano SAB, Latin America’s largest Coca-Cola bottler, dropped the most in four months after Banco Santander SA cut its recommendation to “hold.”
Femsa declined 2.3 percent to 62.95 pesos at 4:00 p.m. New York time, the biggest decline since June 1. The company was cut from “buy” 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 “buy” with a target price of 71 pesos a share.