HALISTER1: Cementos Argos Raised at Morgan Stanley as Supply Concern Fades

Cementos Argos Raised at Morgan Stanley as Supply Concern Fades

(Bloomberg) -- Colombia’s Cementos Argos raised to equalweight from underweight as delays in new cement supply in Colombia eased oversupply concerns, Morgan Stanley analysts Nikolaj Lippman and Lillian Starke write in note.
  • Cementos Argos has also addressed high cost structure, expects 10-15% cash-cost reduction between 2016 and 2018
  • U.S. provides upside risk as that market will be biggest driver of Ebitda growth in next years, fueled by M&A
  • Stock trades at premium to regional and European peers
  • PT set at 12,000 pesos
  • NOTE: Cementos Argos 2 buys, 11 holds and 5 sells; avg PT 11,735 pesos
  • NOTE: Stock unchanged today due to holiday in Colombia; has gained 97% in 1 year vs 14% decline for Colcap index
  • Morgan Stanley kept Cemex and Cemex Latam at equalweight, Elementia at overweight
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
CEMARGOS CB (Cementos Argos SA)
CEMEXCPO MM (Cemex SAB de CV)
ELEMENT* MM (Elementia SAB de CV)
CLH CB (Cemex Latam Holdings SA)

People
Nikolaj Lippmann (Morgan Stanley)

To de-activate this alert, click here

UUID: 7947283