Nothing's particularly easy these days for companies that have to
deal with South America, and likewise there is more than a little
uncertainty about the near-term outlook for Mexico. Those are certainly
challenges for FEMSA (NYSE:FMX),
but the company's solid execution and organic growth continue to move
the company forward, and it is clear that management is following a
vision for a much larger retailing enterprise down the line.
I can understand why some investors won't want to bother with the
currency and economic risks that go with a company operating in Mexico
(not to mention Brazil, Chile, Colombia, and Argentina). I believe the
rewards are worthwhile, though, and I think FEMSA's fair value is around
$105 on the basis of high single-digit long-term growth fueled by the
cash-generating Coca-Cola FEMSA (NYSE:KOF) operations and the growing Comercio Retail operations.
Click here for more:
Amid Many Challenges, FEMSA Keeps Executing
No comments:
Post a Comment