Morgan Stanley analyst Alejandra Obregón Martínez upgraded the rating on Loma Negra Compania Industrial Argentina Sociedad Anonima (LOMA – Research Report) to a Buy yesterday, setting a price target of $15.00.
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Alejandra Obregón Martínez has given her Buy rating due to a combination of factors that suggest a positive outlook for Loma Negra Compania Industrial Argentina Sociedad Anonima. The Argentine cement market appears to be recovering from a cyclical low, supported by a more stable macroeconomic environment and potential policy shifts that could drive investment and increase cement demand. Loma Negra’s strong market position and cost leadership, bolstered by successful investments and consistent management execution, position it well to capitalize on this recovery.
Furthermore, Loma Negra has demonstrated operational excellence, consistently outperforming its peers in terms of EBITDA per ton since 2017. Despite the domestic focus of the Argentine cement market, current cement prices remain below import parity, suggesting room for growth. Additionally, the potential restructuring of Intercement could create opportunities for price discovery, further enhancing Loma Negra’s valuation prospects. These factors collectively underpin Alejandra Obregón Martínez’s positive outlook and Buy rating for the stock.
In another report released on May 12, Itau Unibanco also upgraded the stock to a Buy with a $14.20 price target.