Benzinga | Nov 24, 2021 02:47PM EST

Morgan Stanley Upgrades Femsa - Read Why

* Morgan Stanley analyst Ricardo Alves upgraded Femsa or Fomento Economico Mexicano SAB De CV (NYSE:FMX) to Overweight from Equal Weight with a price target of $92, up from $90 (23% upside).

* Alves calls his change in rating "mostly a valuation call" as he thinks overall fundamentals have not changed significantly over the past few months but Femsa local shares are down about 7% this month.

* Alves also cites Mexico consumption momentum as he sees its core, OXXO, already delivering above pre-pandemic sales over the coming months.

* Recently, Barclays analyst Benjamin Theurer upgraded Femsa to Overweight from Equal Weight with an unchanged price target of $90.

* The analyst sees an "increasingly favorable" outlook for the company that is not reflected in the share price.

* Price Action: FMX shares are trading higher by 0.59% at $74.69 on the last check Wednesday.