UPDATE: Sterne Agee Initiates Neutral on CEMEX

Sterne Agee initiates a Neutral rating on CEMEX SAB de CV (NYSE: CX) as attractive businesses are overshadowed by debt concerns.

Sterne Agee says, “In April 2011, CX announced an extensive transformation program aimed at improving the organization and deleveraging the balance sheet through cost cuts, asset sales, and increased use of alternative fuels. …We think a major overhang on CEMEX's stock over the past couple of years (in addition to general economic concerns) has been the persistent worries that the company will miss the financial covenants required under its 2009 financing agreement.”

CX closed at $4.78 per share on Monday.