OTCPK:PILBF - Post by User
Post by
Spuds21on Jun 10, 2015 11:03am
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Post# 23815602
Fundamentals... Long
Fundamentals... LongCemex raised to Buy at Longbow on strong cement industry fundamentals
- Cemex (CX+2.1%) is upgraded to Buy from Neutral with a $12 price target at Longbow, based on continually improving fundamentals in the cement industry with price increases of 8%-10% supported by volume growth of 6%-8%.
- Utilization rates are climbing and contacts are concerned about available capacity in late 2015 and early 2016; these factors, including limited driver availability, suggest continued suppliers' pricing power, Longbow says.
- CX is entering a period in which all of its main geographic areas are trending higher, the firm says, citing upside to U.S. cement pricing, Mexico recovering off a low base, and Europe stabilizing.