UPDATE: Bank of America Upgrades Cemex to Buy
Bank of America raises its rating on Cemex (NYSE: CX) to Buy from Neutral and raises its price objective to $8 from $5.20 as share dilution might be averted as the company may be able to raise cash from alternative sources.
Bank of America says, "We now believe in the next few months CX might be able to raise $1.5bn or more from the following sources: 1) The sale of non-Ebitda generating assets for an estimated amount of $500mn to $1bn. 2) The sale of its Venezuela assets, for which CX has received $600mn in PDVSA bonds, and 3) potential listing of its Colombian subsidiary (estimated IPO of $500 to $750mn)."
CX closed at $6.72 a share on Monday.
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