Aug. 9 (Bloomberg) -- Consorcio Ara SAB, the Mexican homebuilder whose shares have rallied amid an industry selloff, dropped the most in three months after UBS AG cut the stock to neutral from buy.
Ara declined 8.1 percent to 5.98 pesos at the close in Mexico City, the biggest decline since April 15. It was the worst performer on the Mexican stock exchange’s IPC SmallCap Index, which fell 0.2 percent.
The shares of Mexico City-based Ara have gained 45 percent this year, while the Mexico Habita Index of homebuilders has lost 66 percent. Ara has rallied 39 percent since July 23, when the company reported second-quarter earnings that fell less than analysts forecast.
“We think upside is more limited,” UBS analyst Marimar Torreblanca wrote in a research note to clients today. Ara is now “actually trading above historic average multiples,” Torreblanca wrote.
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