Gruma downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Gruma (GPAGF) to Neutral from Overweight with a price target of MXN 390, down from MXN 430. The stock’s current valuation, “despite not being rich,” already reflects a view that Gruma’s cycle high gross margin levels will linger despite a weaker than expected demand outlook scenario, the analyst tells investors in a research note. The firm believes the company’s pricing power “will remain subdued.”