synopsis

The company recently announced the closing of a successful public offering for 21 million of its class A common shares at a price of $28.25 per share.

Shares of BBB Foods ($TBBB) were in the spotlight on Monday as Grupo Santander initiated coverage of the Mexican discount grocery chain, but retail sentiment turned cautious.

Grupo Santander has an ‘Outperform’ rating for the company’s stock and a $35 price target, Fly.com reported.

Separately, BBB Foods recently announced the closing of a public offering for 21 million of its class A common shares at a price of $28.25 per share, according to a company statement. JPMorgan and Morgan Stanley acted as joint book-running managers for the offering.

Sentiment on Stocktwits turned ‘neutral’ from ‘extremely bullish’ a day ago. Message volumes slipped into the ‘low’ zone compared to ‘high.’

TBBB sentiment meter and message volumes on Feb 11 as of 6:30 am ET

Last week, brokerage firm Itau BBA also initiated BBB Foods with a ‘Market Perform’ rating and a $32 price target, Fly.com reported. According to the firm, BBB Foods is the largest hard discounter in Mexico and its “fastest-growing food retailer,” added the report.

The analyst sees solid momentum for the company and its stock's current valuation as "rich" in Mexico relative to other food retailers, added the report.

BBB Foods sells a limited number of daily grocery items in the “grocery hard discount” segment in Mexico. For its third quarter, the company opened 131 new stores, reaching 2,634 stores as of September 30, 2024. Its Q3 revenue increased by 29.8% compared to the third quarter of 2023 with same-store sales increasing by 11.6% compared to 3Q23.

BBB Foods stock is down 3.61% year-to-date.

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