BBB Foods initiated with a Market Perform at Itau BBA

Itau BBA analyst Alejandro Fuchs last night initiated coverage of BBB Foods (TBBB) with a Market Perform rating and $32 price target BBB Foods is the largest hard discounter in Mexico and its fastest-growing food retailer, the analyst tells investors in a research note. Despite its belief that the story is solid and the momentum is strong, the firm sees the stock’s current valuation as “rich” in Mexico and relative to other food retailers. As such, it prefers to wait for a better entry point at this time.