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Investing.com -- JP Morgan on Tuesday upgraded Cemex to Overweight with a price target of $10.50, saying the Mexican cement maker’s cost-cutting drive and strategic changes under its new chief executive could deliver faster-than-expected gains in profit and cash flow.
The brokerage said it expects Cemex’s earnings before interest, tax, depreciation and amortization to be flat this year before rising 13% in 2026, with savings in Mexico and Europe set to lift margins in the second half.
Analysts also noted the company’s lower debt levels, improving free cash flow, and potential support from a stronger peso.
Cemex shares have risen 57% this year and 77% since April, outpacing U.S. peers but broadly in line with European cement makers.
JP Morgan said investors remain underweight in the stock, leaving room for further buying as the company benefits from restructuring moves and its return to investment-grade credit status.
“Cemex’s cutting-edge strategy goes beyond mere expense reduction; it aims to empower regional teams and create a leaner operating model,” analysts at JPM said.
The company previously had a large corporate structure that was not only unnecessary but also hindered efficiency. By decentralizing operations, regional teams are now fully responsible for their respective areas, “fostering a sense of ownership and accountability."