Conditions are looking better in core Cemex (CX)
markets like the U.S., Mexico, the U.K., and Germany, but there's still
quite a bit further to go before conditions are back to normal.
Improving construction trends in the U.S. and increasing public spending
in Mexico should boost cement and ready-mix demand, helping pricing,
capacity utilization, margins, and cash generation. The process of
valuing Cemex is a little convoluted, but if Cemex can reach
management's goals for mid-cycle EBITDA in 2016/2017, low-to-mid teens
appreciation over each of the next three years doesn't seem
unreasonable.
Follow this link for more:
Major Market Recoveries Can Take Cemex Further
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