Bbb Foods Inc (TBBB)

BBB Foods Inc (TBBB) stock dropped by 6.09% due to an adjustment in UBS's rating, in which TBBB stock got a downgrade rating, disappoiting investors.

• Downgrade rating: UBS downgraded the stock from Buy to Neutral, despite increasing the price target to $27.00 from the previous $26.00.
• UBS's Valuation and Growth Potential: UBS noted that BBB Foods' stock is currently trading at a reasonable multiple, standing at 12 times the estimated EV/EBITDA for 2025, adjusting for accounting standards. However, when factoring in potential dilution from the Equity Incentive Plan, this multiple could rise to 15.8 times. The market's current price of $23 per share reflects expectations for an EBITDA compound annual growth rate (CAGR) slightly below UBS's estimate, leading to a more balanced view of the potential risks and rewards for investing in BBB Foods.