Cemex Rallies Most in Nine Months as Shares Trade Below Targetby
All analysts surveyed by Bloomberg recommend buying company
Their target price for Cemex seen 68% above current level
Cemex SAB surged the most in more than nine months after its recent tumble left shares at half the price of some analysts’ targets.
The biggest cement maker in the Americas jumped 7 percent to 10 pesos at 11:45 a.m. in Mexico City, the biggest gain since Feb. 5. Cemex fell to 9.35 pesos Friday, the lowest since September 2012. The Mexican stock market was closed Monday for a national holiday.
The shares have been in freefall since Monterrey-based Cemex said Oct. 22 that sales declined 17 percent in its home market last quarter. All analysts in a Bloomberg survey who cover the stock have buy recommendations, the highest so-called consensus rating on Mexico’s benchmark IPC index. Their target prices for the shares range from 15 pesos to 20.01 pesos.
“Brokerages started to make adjustments to their models,” Fernando Bolanos, a Monex Casa de Bolsa analyst who has a buy recommendation and a target price of 15 pesos for the end of next year, said from Mexico City. “At the very least it shouldn’t keep falling.”