Deutsche Bank Upgrades CEMEX (CX) to Buy, But Not For Everybody
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Price: $10.66 -4.05%
Rating Summary:
11 Buy, 13 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 5 | New: 5
Rating Summary:
11 Buy, 13 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 5 | Down: 5 | New: 5
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Deutsche Bank upgraded shares of CEMEX (NYSE: CX) today to a Buy rating from its previous rating of Neutral, shares are trading up 8.44 percent on the day.
The company reported solid Q4 results, which the firm notes points to a quicker turnaround than previously expected. Deutsche raised its price target on the company from $7 to $10.
An analyst at Deutsche comments, "We note CX is not a suitable option for every investor. The company’s high beta and share liquidity result in abnormal price volatility tied to a still unstable market sentiment. Our outlook for the global cement industry although improving, remains cautious and we believe that a detaching share price from fair replacement cost levels along with potential syndicate’s pressure for CX to reduce leverage increases the risk of dilution for equity holders. Finally it is worth highlighting that above $11 per ADS several convertibles’ strike prices are reached."
For FY12, the firm raised its EPS estimate from $0.02 to $0.03 on $16.022 billion in total sales. Deutsche also lifted its FY13 EPS estimate from $0.06 to $0.07 on $17.34 billion in total revenues.
For an analyst ratings summary and ratings history on CEMEX click here. For more ratings news on CEMEX click here.
Shares of CEMEX closed at $7.11 yesterday.
The company reported solid Q4 results, which the firm notes points to a quicker turnaround than previously expected. Deutsche raised its price target on the company from $7 to $10.
An analyst at Deutsche comments, "We note CX is not a suitable option for every investor. The company’s high beta and share liquidity result in abnormal price volatility tied to a still unstable market sentiment. Our outlook for the global cement industry although improving, remains cautious and we believe that a detaching share price from fair replacement cost levels along with potential syndicate’s pressure for CX to reduce leverage increases the risk of dilution for equity holders. Finally it is worth highlighting that above $11 per ADS several convertibles’ strike prices are reached."
For FY12, the firm raised its EPS estimate from $0.02 to $0.03 on $16.022 billion in total sales. Deutsche also lifted its FY13 EPS estimate from $0.06 to $0.07 on $17.34 billion in total revenues.
For an analyst ratings summary and ratings history on CEMEX click here. For more ratings news on CEMEX click here.
Shares of CEMEX closed at $7.11 yesterday.
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