NEW YORK (TheStreet) -- Cemex (CX) closed up 3.6% to $12.90 on Friday following Longbow Research's upgrade of the Mexican cement producer. Longbow upgraded Cemex to a "buy" rating from "neutral". This rating comes on the heels of news that the construction industry recovery that blossomed in 2013 will continue to pick up the pace in 2014.
The rating increase helped propel Cemex closer to its 52 week high of $13.51.
There are also brightening prospects for the industry as a whole. A survey conducted by Engineering News-Record revealed this, "The ENR Construction Industry Confidence Index (CICI) for the first quarter of 2014 shows a dramatic leap in expectations about the current and near term by construction and design firm executives," said Janice L. Tuchman, editor-in-chief of Engineering News-Record. "Survey respondents believe the private-sector markets are the healthiest, led by petroleum, power, hotels & hospitality, and multi-unit residential. All sectors measured by the survey were on the upswing."
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 growth in earnings per share, increase in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."