In a report published Thursday, Morgan Stanley analyst Nikolaj Lippmann reiterated an Overweight rating and $14.00 price target on Cemex SAB de CV (NYSE: CX).
In the report, Morgan Stanley noted, “We remain OW on CX and maintain our US$14 PT. However, we do not see any near term catalysts. We are lowering our 2014 and 2015 EBITDA estimates by 3-4%. The decline in estimates comes after a channel check in the Mexican market that suggests the construction recovery is likely to be delayed, again. We expect easier YoY comps in coming quarters, yet expect no real recovery until late 2014. We forecast strong numbers out of the US in 2Q14 and for the remaining part of the year. Our consolidated EBITDA estimate for 2Q14 stands at US$795 mn, below consensus quarterly forecast of US$816 mn.”
Cemex SAB de CV closed on Wednesday at $13.54.
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