BofA raises Loma Negra stock to buy, hikes target to $14

On Wednesday, BofA Securities revised its stance on Loma Negra Compania Industrial Argentina SA (NYSE:LOMA), elevating the stock from a Neutral to a Buy rating. Currently trading at $10.77 with a market cap of $1.26 billion, LOMA has delivered an impressive 51.48% return over the past year. Accompanying this upgrade, the firm also increased its price target to $14.00, up from the previous $11.50. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The upgrade by BofA Securities comes amid a series of positive developments that the firm believes will benefit Loma Negra. The analyst cited a reset in macroeconomic policy, the removal of foreign exchange controls, and an anticipated economic recovery in the upcoming years as key factors driving the upgrade. The company’s strong financial health is reflected in its moderate debt-to-equity ratio of 0.22 and attractive P/E ratio of 8.95. Specifically, the analyst projects economic growth of 5% for the current year and 3.5% for 2026.

The firm also foresees a robust recovery in cement volume growth for Loma Negra, with expectations of a 10% increase in 2025 followed by a strong 8% in 2026. These projections are based on the analyst’s confidence in the mid to long-term economic outlook for the region.

Furthermore, BofA Securities highlighted the potential for significant investment opportunities in Argentina, which it views as an untapped commodity frontier. The analyst specifically mentioned the prospects in oil, copper, lithium, and other commodities as drivers for this optimistic assessment.

The revised price objective from BofA Securities suggests a positive view of Loma Negra’s future performance, reflecting a belief in the company’s growth potential amidst Argentina’s evolving economic landscape. With revenue of $678.48M and net income of $149.26M in the last twelve months, LOMA demonstrates solid operational performance. For deeper insights into LOMA’s financials and growth prospects, InvestingPro offers comprehensive analysis with 10+ additional exclusive tips and detailed valuation metrics.

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