HSBC Maintains Buy Rating on FEMSA (FMX) Amid CEO Succession Plans

Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) ranks among the best sin stocks to buy right now. On August 22, HSBC reduced its price target for Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) to $112 from $122, while retaining a Buy rating on the company’s shares. The adjustment comes as FEMSA engages in what HSBC calls a “generational leadership transition,” with the board slated to name a new CEO this year.

According to HSBC, FEMSA has excellent internal executive candidates who have demonstrated success at Oxxo, beverages, and in spearheading digital transformation. The CEO of the Proximity and Health Division, Jose Antonio Fernandez Garza, was specifically mentioned by the firm as a possible nominee.

Moreover, FEMSA’s board has been more in line with minority shareholders over the past two years by selling non-core assets and giving back capital to shareholders, though HSBC says there is still “more to do” in this area.

Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX), also known as FEMSA, is a multinational beverage and retail firm based in Monterrey, Mexico.

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Disclosure: None. This article is originally published at Insider Monkey.