Pinfra Retreats as Credit Suisse Cuts Rating: Mexico City MoverJonathan Levin
Promotora y Operadora de Infraestructura SAB, Mexico’s best-performing construction company in 2013, fell the most in 14 months as Credit Suisse Group AG cut its recommendation to the equivalent of hold.
Shares of Pinfra, as the company is also known, fell 4.8 percent to 131.02 pesos in Mexico City trading today, the biggest drop on a closing basis since May 31, 2012. The benchmark IPC index of 35 Mexican companies, which Pinfra will join Sept. 2 in an annual revision of the market gauge, declined 1.3 percent.
Credit Suisse analysts said in a research note to clients that while Pinfra is a “strong operator,” the target price of 129.69 pesos for the company indicates a 6 percent drop from last week’s close. The bank reduced its recommendation to neutral from outperform.
“Market levels have outrun market fundamentals,” Credit Suisse’s Eugenio Amador, Julian Bravo and Bruno Savaris wrote in the research note.
Pinfra, which is based in Mexico City, rallied 60 percent this year through last week, beating infrastructure peers OHL Mexico SAB and Empresas ICA SAB as its 4.43 billion peso ($340 million) follow-on boosted trading. Since the Oct. 4 offering, three-month average volume has tripled to 726,000 shares a day and the price has almost doubled.