CX Stock Forecast & Price Target

Cemex SAB de CV has demonstrated resilience in its operations, with a significant recovery in volumes post-recession, evidenced by a 6% year-over-year growth in 2020 and approximately 8% in 2021, despite pandemic challenges. The company's effective pricing strategy has enabled it to manage higher energy costs, particularly in Mexico, which contributes around 40% to its EBITDA. Furthermore, Cemex's focus on sustainable growth and the anticipated demand for infrastructure projects presents a promising outlook for revenue growth, especially in the U.S. market as it aims to increase its EBITDA share in that region from 29% to 40% over the medium term.

Cemex's outlook is negatively affected by persistently low business confidence, leading to expectations of growth remaining below potential, particularly in light of declining public construction spending anticipated in FY25. The company's net income estimates have decreased by 10% due to significant losses from the sale of its Philippines division, which adversely impacts its discontinued operations. Additionally, while management anticipates a recovery in volumes in the second half of FY25, the overall growth strategy is threatened by potential erosion of margins and higher capital expenditure linked to ongoing industry projects.