CX - Cemex Looking At A Pretty Attractive Setup While Investors Seem Worried About The Cycle
- Cemex has been posting better results, and the pricing outlook for the U.S. is strong as major markets are effectively sold out ahead of improving non-residential and infrastructure project activity.
- The outlook for Mexico and Latin America is also improving, with healthy private construction activity in Mexico, improving construction activity elsewhere in Latin America, and future government projects in Mexico.
- Hitting management's ESG/carbon emissions goals will be challenging, but management is taking a multi-faceted approach.
- Mid-single-digit revenue growth and double-digit growth in EBITDA and FCF can support a fair value above $10 today, but the Street seems concerned about signs of a near-term peak in non-resi activity.
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Cemex Looking At A Pretty Attractive Setup While Investors Seem Worried About The Cycle