UBS Pactual Chops Banorte to Neutral

UBS Pactual has downgraded Banorte’s stock to neutral from buy as it sees valuations as “stretchy.” But not all is bad news for the Mexican bank, as the shop sees a recent $150m injection from the IFC as positive as it strengthens Banorte’s capital base. UBS Pactual also increased its price target to MXP37.5 per share. On July 27, the shares closed at MXP32.5.