Cemex upgraded at Bank of America on turnaround momentum, cost controls

[Construction Worker Guiding Cement Mixer Truck Trough]
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Bank of America Securities on Wednesday upgraded Cemex (NYSE:CX [https://seekingalpha.com/symbol/CX]) (OTCPK:CXMSF [https://seekingalpha.com/symbol/CXMSF]) to Buy from Neutral, pointing to stronger cash generation, aggressive cost reductions and improving cement demand as key drivers of a multiyear recovery.

According to an Oct. 15 report, BofA analysts led by Carlos Peyrelongue said Cemex (NYSE:CX [https://seekingalpha.com/symbol/CX]) is “well positioned for 2026,” supported by five catalysts: improved cash conversion, $400 million in cost savings from 2025–2027, a rebound in Mexico’s cement market, higher margins and favorable currency effects. The firm projects 2025 earnings before interest, taxes, depreciation and amortization of $3.86 billion and expects operating margins to rise by 130 basis points through 2027.

New Chief Executive Jaime Muguiro is focusing on shareholder returns, including $400 million in additional cost savings, smaller-scale acquisitions and greater cash distributions through buybacks and dividends. BofA highlighted Muguiro’s “disciplined execution” in areas such as logistics, procurement and capital spending, with total savings estimated at $600 million to $800 million through 2027.

The bank expects Cemex’s (NYSE:CX [https://seekingalpha.com/symbol/CX]) capital expenditures to drop from $3 billion in 2024 to $1 billion by 2027, helping boost free cash flow and fund shareholder payouts. It also noted material improvements in Cemex’s (CX [https://seekingalpha.com/symbol/CX]) U.S. and European operations as dollar-based debt and energy costs stabilize.

BofA’s revised valuation implies a forward price-to-earnings ratio of 11.5 times and enterprise value-to-ebitda multiple of 7.4 times for 2026, reflecting confidence in the company’s “cutting-edge” restructuring strategy and continued earnings growth.

The bank raised its price objective to $10.80 per ADR from $10 previously.

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* CEMEX, S.A.B. de C.V. 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4804200-cemex-s-a-b-de-c-v-2025-q2-results-earnings-call-presentation]
* Seeking Alpha’s Quant Rating on Cemex [https://seekingalpha.com/symbol/CX/ratings/quant-ratings]
* Historical earnings data for Cemex [https://seekingalpha.com/symbol/CX/earnings]