Cemex downgraded to Neutral at Bank of America
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Cemex (NYSE:CX) on Monday was downgraded to Neutral from a previous investment rating of Buy by analysts at Bank of America. They said the cement maker faces the possibility of weakening demand in U.S. housing amid risks of an economic slowdown.
The downgraded also is the result of a significant rally in Cemex’s (CX) stock. The shares surged as much as 60% from the beginning of the year through May 12, compared with a 7.8% gain for the Standard & Poor’s 500 stock index (SP500).
Seeking Alpha contributor BI Insights rates Cemex (CX) as a Buy based on its current valuation compared with historical levels. Columnist Stephen Simpson also has a Buy rating on Cemex (CX) on the possibility of greater spending on infrastructure in the United States.