Mexican Grocery Chain BBB Foods Lands Upgrade, But Retail Interest Remains Weak A Year After NYSE Debut

Mexican grocery chain BBB Foods (TBBB) recently received a rating upgrade from Latin American investment bank Itau BBA, The Fly reported.

BBA upgraded its rating 'Outperform' from 'Market Perform' and set a price target of $36. The figure signals a 38.5% upside from the stock's last close on Thursday.

BBB Foods operates Tiendas 3B discount grocery chains in Mexico and was listed on the New York Stock Exchange in February last year. 

The firm raised $677 million in the initial public offering (IPO) and, earlier this year, raised nearly $600 million through a private placement of its shares.

BBB Foods operates about 2,800 stores and clocked $2.83 billion in sales last year.

On Stocktwits, retail sentiment for the company was 'neutral.’ The ticker has amassed merely 160 followers on the platform so far.

One user posted after the company's most recent analyst call, saying that management forecasts an improvement in higher gross margins and that there was plenty of room for geographic growth.

Another user suggested buying and holding the stock for the long term.

The company hit a peak market cap of over $4 billion in August 2024 and regained that valuation in November last year.

BBB Foods shares have climbed about 45% since the company's IPO. They are down 8% year to date.

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Editor's Note: A previous version of the headline carried an incorrect spelling of the word "weak." The error has been rectified.