Industrias Penoles downgraded to Underperform from Sector Perform at Scotiabank

Scotiabank analyst Alfonso Salazar downgraded Industrias Penoles to Underperform from Sector Perform with a price target of MXN 200, down from MXN 220. The stock’s elative outperformance to its precious metals subsidiary Fresnillo is unwarranted, the analyst tells investors in a research note. Based on sum-of-the-parts estimates, Penoles is now trading at an 18% premium, which compares to its 10-year average discount of 33%, says the firm. On a relative basis, it prefers Fresnillo.