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Investing.com - BofA Securities has raised its price target on CEMEX (NYSE:CX) to $8.00 from $7.30 while maintaining a Neutral rating on the cement manufacturer’s stock. The company, currently trading at $7.91 and near its 52-week high of $7.94, has shown impressive momentum with a 41% gain year-to-date.
The price target increase reflects a lower cost of capital in BofA’s valuation model, according to analyst notes released Wednesday.
BofA Securities anticipates CEMEX will face challenging conditions in the second quarter, with the firm projecting EBITDA of $818 million, slightly below the consensus estimate of $824 million.
The firm expects weak performance in the United States and Mexico markets, with Mexican cement volumes showing a double-digit decrease of 10% year-over-year for April and May, based on INEGI data.
These challenges may be partially offset by solid performance from CEMEX’s European operations, though the company faces additional downside risks in Mexico due to its higher exposure to infrastructure projects compared to peers.
In other recent news, Cemex, S.A.B. de C.V. has successfully completed a $1 billion offering of subordinated perpetual notes. These notes, which do not have a fixed maturity date, were sold to qualified institutional buyers under U.S. and international regulations. Additionally, Cemex announced a cash dividend totaling $130 million, as approved at its Ordinary General Shareholders’ Meeting. The dividend will be distributed in four equal installments, with the first payment scheduled for June 18, 2025. Shareholders of Cemex Ordinary Participation Certificates and American Depositary Shares as of June 17, 2025, will be eligible for this dividend. Subsequent payments are planned for September 18, 2025, December 16, 2025, and March 12, 2026. Each ADS represents 10 CPOs, with specific amounts allocated per share, CPO, and ADS for the first installment. These recent developments reflect Cemex’s ongoing financial activities and shareholder engagement.
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