Grupo Bimbo initiated with a Neutral at Citi

Citi initiated coverage of Grupo Bimbo with a Neutral rating and MXN 90 price target. The analyst initiated coverage of the Mexico food manufacturers with Alsea is the top pick, followed by Gruma and Bimbo. The firm acknowledges that corn and wheat prices should decrease in 2024, but believes this is already priced into both Gruma and Bimbo. Yet, the market seems to be underestimating Alsea’s operating leverage capacity for 2024, the analyst tells investors in a research note.