Morgan Stanley Sees Earnings Risk Related To Venezuela For Coca-Cola FEMSA

In a report published Monday, Morgan Stanley analyst Lore Serra reiterated an Underweight rating on

. In the report, Morgan Stanley noted, “KOF's shares trade at P/E multiples of 23.2x and 20.0x our 2014/2015 earnings estimates, which is at the upper end of the trading range of comparable companies. We see this valuation as full, particularly relative to earnings risk related to Venezuela. This franchise has driven a high percentage of KOF's overall organic growth in recent years, and accounted for close to 19% of KOF's consolidated EBITDA last year, with strong top-line gains as well as access to the official exchange rate for US$-denominated raw materials.” Coca-Cola FEMSA closed on Friday at $111.46.