CX - Cemex jumps as Credit Suisse upgrades on moderating kiln fuel prices

Cemex (NYSE:CX) bumps 3% higher after Credit Suisse upgraded shares to Outperform from Neutral with a $6.70 price target on Wednesday, saying rapidly rising kiln fuel prices are starting to see normalization while Mexico cement prices will rise faster than expected. Singapore coking coal futures have fallen 23% from their March peak, "and our commodities team believes this could continue, as China's coal output is expected to improve," Credit Suisse's Vanessa Quiroga writes. The firm's channel checks indicate a second double digit price increase for bagged cement was announced in Mexico in early April, prompting Quiroga to raise expected cement price increases in the country to 16.9% from 12.4% for FY 2022. Goldman Sachs took a different view earlier this month when it downgraded Cemex (CX) to Neutral from Buy, saying energy cost inflation likely will not be fully offset by cement price hikes.

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Cemex jumps as Credit Suisse upgrades on moderating kiln fuel prices