Wal-Mart de Mexico Falls Most Since August on Credit Suisse CutJonathan Levin
Wal-Mart de Mexico SAB, Latin America’s largest retailer, plunged the most in six months as Credit Suisse Group AG recommended selling the stock.
Walmex, as the company is also known, fell as much as 4.2 percent in the steepest intraday decline since Aug. 15. It was down 3.1 percent at 39.69 pesos at 12:53 p.m. in Mexico City. Trading volume was 1.8 times the full-day average of the past three months. The plunge contributed the most to the benchmark IPC index’s 0.4 percent decline.
Credit Suisse cut its recommendation to the equivalent of sell from hold, according to a research note dated today. The bank lowered its year-end target price to 37 pesos from 38 pesos.
“Walmex will grow less than it did in the past,” analyst Antonio Gonzalez wrote in the report. That includes both “new units, as well as from an organic point of view, given no clear fix to weak traffic dynamics.”
Walmex’s same-store sales fell 0.3 percent in January from a year earlier, the first contraction since October, according to a Feb. 6 filing with Mexico’s stock exchange.