CX - Cemex sees 2021 EBITDA hitting $3.1B net debt cut by $2B

Cemex ([[CX]] +8.9%) shares rally after the company raised its FY 2021 EBITDA guidance to a higher than expected $3.1B, citing strong demand helped by fiscal stimulus in the U.S. and other markets.In an investor presentation, Cemex says it expects to achieve an investment grade rating by 2022, and forecasts a 3x leverage ratio by Q2 2021, two-and-a-half years ahead of schedule.Cemex says it should reduce net debt by $2B this year, driven by free cash flow generation, the sale of CO2 credits earlier this year and the issuance of $1B of subordinated notes.The company also expects growth investments alone will add ~$400M to EBITDA by 2023.However, historic valuation analysis indicates the stock is overvalued, Seeking Value Research writes in an analysis published recently on Seeking Alpha.

For further details see:

Cemex sees 2021 EBITDA hitting $3.1B, net debt cut by $2B