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Fomento Económico Mexicano, aka Femsa, (NYSE:FMX) got a bump from HSBC with buybacks and special dividends expected. The company is also progressing with its capital strategy and governance.
- The bank increased its rating to Buy from Hold with a price target of $158 from $124
- “FEMSA is now a cleaner structure, more improvements to follow, and the operating outlook remains solid,” analysts led by Carlos Laboy wrote in a note.
- “It entered 2024 having sold all of the non-core assets in its portfolio and the Heineken stake, it refocused on its Oxxo and KOF businesses and the fintech partnerships remain a growth opportunity.”
- The beverage company could return a large portion of its $8B in cash to shareholders through special dividends and share buybacks this year, which would emphasize growth and value creation over control and may improve trading liquidity sufficiently to mitigate share buybacks, the bank said.
- FMX is little changed on Friday.