Femsa upgraded to Overweight from Equal Weight at Barclays

Barclays upgraded Femsa (FMX) to Overweight from Equal Weight with a price target of $130, up from $115. The company “clearly surprised us” over the course of the year with the speed of executing its “Forward plan” and several milestone transactions, such as the sale of its entire Heineken stake as well as exiting other non-core businesses, the analyst tells investors in a research note. The firm says management shared during last week’s conference call that the internal cash generation by Coca-Cola Femsa (KOF) and retail would fund all its capital expenditure needs. It thinks a combination of dividend and reinvestment can yield an attractive return early on, while maximizing value over time.