Becle upgraded to Outperform from Sector Perform at Scotiabank

Scotiabank analyst Felipe Ucros upgraded Becle to Outperform from Sector Perform with a MXN 52 price target. While “this was a poor quarter” by most measures, “the market won’t care” after Campari reported two days ago that spot agave prices are now below MXN 20 per kg, from MXN 25-30 earlier in the year, the analyst tells investors. By the firm’s math, that represents a 7-14 percentage point increase in EBITDA margins and “hopefully, Cuervo will give us an idea and a time-to-impact,” the analyst added.