business

JPMorgan Call Spurs Slide in Liverpool as Sales Trail Estimates

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El Puerto de Liverpool SAB, Mexico’s biggest department store, sank as JPMorgan Chase & Co. cut its recommendation for the shares a day after the company reported sales that trailed analysts’ estimates.

The retailer, named after the Port of Liverpool when it imported merchandise from the English city in the 19th century, slumped 2.2 percent to close at 238.46 pesos on Tuesday in Mexico City. That compares with a 0.8 percent drop for the IPC stock benchmark.

Liverpool’s results halted a string of four straight quarters in which the company’s revenue had beat forecasts even as Mexico’s economy showed signs of sluggishness. Shares of the Mexico City-based retailer were lowered to neutral by JPMorgan, and rated the equivalent of sell at Itau BBA SA, the corporate and investment-banking unit of Latin America’s biggest lender by market value.

“The numbers could weigh down the share price in upcoming trading sessions,” Joaquin Ley and Martha V. Shelton, analysts at Itau BBA, said in a note to clients. The results were “not good enough,” they wrote.

The stock has still surged 61 percent so far this year, the third-biggest gain in Mexico’s IPC index, which advanced 3.6 percent during the span. The rally sent the retailer’s valuation to 31 times estimated earnings, or 42 percent above the 10-year average, according to data compiled by Bloomberg.

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