Femsa Slips as Morgan Stanley Cuts to `Equal-weight'
Fomento Economico Mexicano SAB (FEMSAUBD), Latin America's largest beverage company, fell the most in two weeks after Morgan Stanley reduced its rating, saying beer business profits aren't likely to rise soon.
Femsa, as Fomento Economico is known, declined 3.1 percent to 47.66 pesos in Mexico City trading, the biggest drop since July 23.
The sale of the brewer isn't likely in the next two years, Morgan Stanley analysts Lore Serra and Jeronimo de Guzman wrote in a research report dated today. An increase in beer profits would be the only other catalyst to boost shares, and that won't happen ``near-term,'' the analysts wrote.
Morgan Stanley cut Femsa to ``equal-weight'' from ``overweight.''
U.S.-traded shares of Femsa may rise to $53 in a year, more than a previous estimate of $49, according to Morgan Stanley. American depositary receipts fell 3.4 percent to $47.70.
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