HSBC cut its recommendation on shares of Mexican mining and railroads company Grupo Mexico SAB (GMEXICO.MX) to neutral from overweight Wednesday, citing valuation.

HSBC said in a research note that Grupo Mexico's proposal to merge its Southern Copper Corp. (SCCO, SCCO.VL) unit and its U.S. mining concern Asarco LLC into subsidiary Americas Mining Corp., or AMC, if carried out, could add 4 pesos (US32 cents) to the bank's 12-month price target of MXN40 for Grupo Mexico shares.

Grupo Mexico series B shares trading on the Mexican stock exchange were off 0.6% around 11:50 a.m. EDT at MXN33.58.

The main risks to the investment recommendation involve the proposed transaction with AMC, HSBC said, as well as copper prices if they turn out weaker than estimated.

-By Anthony Harrup, Dow Jones Newswires; 5255- 5980-5176; anthony.harrup@dowjones.com
ASE Technology (NYSE:ASX)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more ASE Technology Charts.
ASE Technology (NYSE:ASX)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more ASE Technology Charts.