Cemex SAB: Balancing Risks and Opportunities Amid Strategic Shifts

Analyst Carlos Peyrelongue of Bank of America Securities reiterated a Hold rating on Cemex SAB (CX – Research Report), retaining the price target of $7.30.

Carlos Peyrelongue has given his Hold rating due to a combination of factors influencing Cemex SAB’s current performance and future outlook. The company reported weaker-than-expected results for the recent quarter, with revenues falling slightly below expectations and cement volumes declining in key markets like Mexico and the United States. Despite these challenges, Cemex showed strength in other regions such as EMEA and SCAC, where cement volumes increased.
Cemex’s new CEO, Jaime Muguiro, has outlined strategic priorities including deleveraging, targeted acquisitions, and enhancing profitability, which could positively impact future performance. However, the company’s unchanged EBITDA guidance for 2025 and revised volume forecasts suggest a cautious outlook. The stock is trading at an attractive valuation, but potential risks such as higher interest rates, geopolitical uncertainties, and fiscal challenges in Mexico contribute to the Hold rating. Overall, while there are positive elements, the balance of risks and opportunities justifies a neutral stance.

In another report released on April 15, Bradesco also downgraded the stock to a Hold with a $7.50 price target.