Wal-Mart de Mexico upgraded to Outperform from Sector Perform at Scotiabank

Scotiabank upgraded Wal-Mart de Mexico to Outperform from Sector Perform with an MXN 85 price target. Walmex said on Friday that the antitrust authority in Mexico, COFECE, started an administrative process for alleged relative monopolistic practices and reaction to that news has been “overblown,” the analyst tells investors. The media is citing a fine of up to 8% of Walmex’s revenues, implying a roughly $3.5B impact, but the firm sees this as “excessive” considering COFECE’s total imposed fines from 2018 to 2020 combined were about $130M, the analyst added.