Cemex SAB, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Carlos Peyrelongue from Bank of America Securities reiterated a Hold rating on the stock and has a $10.00 price target.
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Carlos Peyrelongue has given his Hold rating due to a combination of factors influencing Cemex SAB’s stock performance. The stock has seen positive momentum, driven by aggressive cost-saving measures, a focus on free cash flow generation, and strategic leadership under a new CEO. However, despite these strengths, the stock is currently trading above its five-year average EV/EBITDA, and no significant earnings surprises are anticipated in the near term.
Carlos Peyrelongue’s rating is also influenced by the balance of risks and opportunities facing Cemex. While the company benefits from favorable foreign exchange conditions and easier comparisons in Mexico and the US, challenges persist in the housing market, and potential macroeconomic headwinds could impact future growth. Long-term structural tailwinds, such as US manufacturing revival and infrastructure developments, provide a positive outlook, but these are countered by concerns over higher interest rates, currency fluctuations, and geopolitical risks.
Peyrelongue covers the Industrials sector, focusing on stocks such as Grupo Aeroportuario Del Centro, Grupo Aeroportuario del Pacifico, and Corporacion America Airports SA. According to TipRanks, Peyrelongue has an average return of -1.7% and a 48.89% success rate on recommended stocks.