Cemex cut to ’hold’ from ’buy’ at ING

Cemex cut to ’hold’ from ’buy’ at ING
Published: 19 November 2004

ING Financial Markets has lowered its recommendation on Cemex SA to ’hold’ from ’buy’ after the recent 14 per cent recovery in the company’s share price. The rebound has taken the stock back to where it was trading before the Mexican cement maker announced the acquisition of the UK’s RMC Group PLC, ING analyst Mark Cartlich said in a note. Cemex’s shares are now trading 1 per cent above ING’s revised target price of US$31.1 and thus no longer warrant a ’buy’ rating, he added. RMC said yesterday both its shareholders and a court meeting have approved the recommended acquisition of RMC by Cemex. Cemex’s ADRs closed yesterday 2.21 pct higher at US$31.39.