Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Major Market Recoveries Can Take Cemex Further

Conditions are looking better in core Cemex (NYSE: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.

Leveraged To Construction And Public Spending

One of the largest cement companies in the world, Cemex has a global operation spread across Northern Europe, the Mediterranean...

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