JP Morgan upgrades Cemex, anticipating faster cost savings under new CEO

Investing.com — JP Morgan raised Cemex to Weigh at $10.50 on Tuesday. Cost cuts and strategic changes under the Mexican cement maker's new chief executive could lead to faster gains in profit and cash flow than expected, he said.

The brokerage expects Cemex's earnings before interest, taxes, depreciation and amortization to remain stable this year, rising 13% in 2026. Savings in Mexico and Europe are expected to boost margins in the second half.

However, analysts pointed to the company's low debt levels, improving free cash flow and potential support that could come from a stronger peso.

Cemex shares have risen 57% this year and 77% since April. While this increase outpaced its competitors in the United States, it was broadly in line with European cement producers.

JP Morgan noted that investors are still underweight in the stock. This leaves room for more acquisitions as the company benefits from restructuring moves and its return to investable loan status.

Analysts at JPM said: “Cemex's pioneering strategy goes beyond just expense reduction. It aims to strengthen regional teams and create a leaner business model.”

Previously, the company had a large corporate structure that was not only unnecessary, but also hindered efficiency. By decentralizing operations, regional teams have now become fully responsible for their respective fields. This, in turn, encourages “a sense of ownership and accountability.”

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