UPDATE: Citigroup Initiates Coca-Cola FEMSA with Neutral, $134 PT on Valuation

Citigroup initiated its coverage on Coca-Cola FEMSA KOF with a Neutral rating and a price target of $134. Citigroup said, "Our Neutral rating is based on valuation. We believe top-line trends can recover in Mexico in 2H12, and expect it to help drive consolidated organic EBITDA growth this year. In KOF's South American division, a higher than expected Brazilian soft drink tax hike (starting October 1), and higher labor costs in Argentina will likely require more tactical price increases than originally planned throughout the year." Coca-Cola FEMSA closed at $123.09 on Thursday.