BBB Foods initiated with a Hold at Jefferies

Jefferies initiated coverage of BBB Foods with a Hold rating and $33 price target. The firm sees BBB as one of the most compelling growth stories in Latin America retail, growing the store footprint over 20%, with a consistent track record of high same-store-sales growth. The company’s low margins relative to peers should benefit from rising scale and maturation of existing stores, the analyst tells investors in a research note. However, Jefferies believes the stock’s valuation reflects the company’s high growth prospects.