Loma Negra initiated with a Buy at Citi

Citi analyst Andres Cardona initiated coverage of Loma Negra (LOMA) with a Buy rating and $16 price target The firm sees cement consumption per capita at 205kg, the lowest level since 2005, offering an “interesting entry point” to a multi-year cement demand recovery. Cement demand is strongly linked to macro performance, driving a “powerful earnings momentum narrative over the coming years,” the analyst tells investors in a research note. Citi says that unlike 2017, when Loma did its initial public offering, it foresees no major capex commitment for the company. As such, the company has a strong free cash flow case, the firm contends. It sees a good entry point with Loma shares down 18% from recent highs.