Analysts Nikolaj Lippmann and Lillian Starke raised the price target of Cemex to $14 from $13 and reiterated its "overweight" rating. The analysts wrote that "consolidation in Mexico's cement industry came into focus after the Cemex-Holcim asset swap last year." They noted that more consolidation could "be a game-changer with regard to long-term profitability of the market."
Lippmann and Starke note that "supply looks more disciplined" even without more consolidation. "Several plants could be delayed. This could create a window for CX from 2015-17. Consolidation would extend this," they wrote.
Cemex rallied even before the analysts' note, gaining 19% over the past three months.
TheStreet Ratings team rates CEMEX SAB DE CV as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CEMEX SAB DE CV (CX) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."