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Investing.com - JPMorgan downgraded Orbia Advance Corp SAB de CV (BMV:ORBIA) from Overweight to Neutral and lowered its price target to 18.50 pesos from 22.50 pesos.
The downgrade comes as PVC and infrastructure markets have experienced unfavorable mix and operational disruptions, while the company’s Connectivity Solutions and Fluor & Energy Materials continue to face mild industry trends.
Despite these challenges, Orbia has reaffirmed its EBITDA guidance at $1,100-$1,200 million, with capital expenditures managed to $400 million or less, focusing on safety, operational integrity, and completing growth projects.
JPMorgan forecasts recurring EBITDA of $1,075 million for 2025, which falls below the company’s guidance range.
The investment bank expressed caution regarding Orbia’s leverage ratio of 3.5x Net Debt/EBITDA, while acknowledging the potential for divestments to improve this metric.
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