JPMorgan downgrades Cementos Pacasmayo to Underweight on margin peak

JPMorgan downgraded Cementos Pacasmayo to Underweight from Neutral with an unchanged price target of $6. The company has limited room to improve EBITDA margins further after an “impressive” gain to 28% expected for this year versus 2022 and volumes are “somewhat weak,” the analyst tells investors in a research note. The firm says this will likely limit Cementos Pacasmayo’s opportunities to grow EBITDA. For 2025, JPMorgan sees limited opportunities for higher margins as tailwinds from lower energy cost diminish and with limited room to increase prices.