Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Ara Plummets as UBS Cuts Shares to Neutral: Mexico City Mover

Don't Miss Out —
Follow us on:

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.

To contact the reporter on this story: Newley Purnell in New York at npurnell1@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.