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Gruma downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank downgraded Gruma to Sector Perform from Outperform with a price target of MXN 370, up from MXN 360. Gruma posted another set of solid results but the company’s consolidated volumes are no longer growing, margin tailwinds are decelerating, hedging doesn’t provide 2025 guarantees, and its new private label strategy adds risk, the analyst tells investors in a research note.

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