Bank of America Securities analyst Carlos Peyrelongue reiterated a Hold rating on Cemex SAB (CX – Research Report) today and set a price target of $7.30.
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Carlos Peyrelongue has given his Hold rating due to a combination of factors, including the challenging quarterly numbers anticipated for Cemex SAB. The political transition in Mexico, uncertainty from the US elections, and elevated mortgage rates are expected to impact the company’s revenues and EBITDA negatively. Furthermore, there is a projected decrease in consolidated volumes driven by declines in key regions such as Mexico, the US, and South/Central America, despite potential positive surprises from Europe.
Cemex’s valuation at 5.7x forward EBITDA, which is a 14% discount compared to its five-year average, presents an attractive aspect. However, potential negatives such as softer US cement prices, sustained high-interest rates, and geopolitical risks weigh on the outlook. While there are optimistic long-term growth prospects linked to US manufacturing revival and infrastructure spending, these are balanced by the current economic uncertainties, justifying the Hold rating.
According to TipRanks, Peyrelongue is a 3-star analyst with an average return of 2.9% and a 54.05% success rate.