(Updates to reflect further drop to 3 1/2-yr low)
By Noe Torres
MEXICO CITY, Feb 19 (Reuters) - Wal-Mart de Mexico's shares fell more than 5 percent to their lowest in about 3-1/2 years on Wednesday, a day after the retailer, controlled by Wal-Mart Stores Inc, said its fourth-quarter profit fell nearly 13 percent.
Shares of Walmex, as the company is known locally, were down over 5 percent, falling to as low as 28.98 pesos ($2.19) in morning trading, their lowest since August 2010.
On Tuesday, Walmex posted its biggest drop in quarterly profit since 1999 after price cuts failed to offset sinking consumer confidence in Latin America's No. 2 economy.
"We were expecting the fall, so we've lowered our target price to 35.50 pesos from a previous level of 38 pesos, on the back of the poor results and a more cautious economic scenario for 2014," said analyst Marisol Huerta of brokerage Banorte Ixe.
Experts expect Walmex's poor run to continue into the first quarter after the company reported a 3.8 percent decline in same-store sales for January.
$1 = 13.2617 Mexican pesos Writing by Gabriel Stargardter; Editing by Lisa Von Ahn and Bernadette Baum