BofA Securities raises CEMEX stock price target to $10 on cost savings

Investing.com - BofA Securities raised its price target on CEMEX (NYSE:CX) to $10.00 from $8.60 while maintaining a Neutral rating on the cement manufacturer. The company, currently trading at $9.16 with a market capitalization of $13.3 billion, is showing signs of being slightly undervalued according to InvestingPro Fair Value analysis.

The price target increase reflects BofA’s updated discounted cash flow analysis based on year-end 2026 projections and adjustments to estimates for margins, volumes, and foreign exchange rates.

CEMEX has outperformed other regional cement stocks over the past six months, driven by aggressive cost-saving programs, a focus on free cash flow generation, and the appointment of a new CEO.

The firm notes that the new CEO is focused on improving CEMEX’s return on invested capital and is prepared to deploy $2 billion in a disciplined merger and acquisition approach.

Despite these positive factors, BofA maintains its Neutral rating, citing limited potential for earnings surprises this year and next, along with CEMEX’s current valuation trading above its five-year average enterprise value to EBITDA ratio.

In other recent news, Cemex has announced the successful closure of a $1 billion subordinated perpetual notes offering. This financial maneuver was directed at qualified institutional buyers and non-U.S. persons, providing Cemex with additional capital. Additionally, Cemex declared a cash dividend totaling $130 million, to be distributed in four equal installments, with the first payment set for June 18, 2025. In terms of stock analysis, Scotiabank raised Cemex’s price target to $10.90, attributing the change to revised assumptions about U.S. Treasury yields. Meanwhile, JPMorgan upgraded Cemex’s stock rating to Overweight, citing the company’s cost-saving program as a key factor, and adjusted the price target to $10.50. BofA Securities also increased its price target for Cemex to $8.00, reflecting a lower cost of capital in its valuation model. These developments indicate a positive outlook from analysts regarding Cemex’s financial strategies and market positioning.

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