Televisa Drops From Record High as Citigroup Cuts Stock to Hold

Grupo Televisa SAB, Mexico’s largest television broadcaster, fell from a record high after Citigroup Inc. lowered the stock to the equivalent of hold on concern revenue growth will slow.

Shares fell 1.2 percent to 90.10 pesos at 10:15 a.m. in Mexico City in the worst performance on the benchmark IPC index after construction company Empresas ICA SAB. The stock rallied yesterday to a record high 91.15 pesos.

Citigroup cut sales and profit estimates for the Mexico City-based company in 2014 and 2015 and reduced the stock’s price target to 96 pesos from 98 pesos.

“The shares are less enticing than before,” Citigroup analysts led by Julio R. Zamora wrote in a research report published today. “We expect higher advertising revenues, but lower revenues in network subscription, licensing, sky and cable television.”

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