BofA analyst Carlos Peyrelongue upgraded Cemex to Buy from Neutral with a price target of $9, up from $8.20. Cemex is a clear beneficiary of secular medium- to long-term nearshoring trends which should support cement volume demand in the U.S. and Mexico in the next five years, the analyst tells investors in a research note. The firm sees lower input costs for key energy inputs, including petcoke, coal, natural gas, and diesel, which, combined with higher use of alternative fuel usage for its kilns, should allow for further EBITDA margin expansion.
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