UPDATE: Deutsche Bank Upgrades Gruma to Buy, Raises PT Following 1Q13 Release

In a report published Friday, Deutsche Bank analyst Jose Yordan upgraded the rating on Gruma

from Hold to Buy, and raised the price target from $12.50 to $26.00. In the report, Yordan noted, “GMK has been the best performer in our coverage this year, and until today we did not see a fundamental justification for it (aside from strongly positive inflows into Mexico). But after today's 1Q13 release (that revealed positive margin surprises in all operating units, especially the core U.S. business, driven by important cost reduction initiatives) and our Commodities Team's recent high-teens downward revision in corn/wheat price forecasts, we are raising our estimates significantly. As a result of this and Gruma's high leverage, we are raising our price target to $26/ADS and upgrading from Hold to Buy.” Gruma closed on Thursday at $20.10.