UPDATE: Bank of America Raises PT on Cemex on Higher Earnings

In a report published Wednesday, Bank of America analyst reiterated its Buy rating on Cemex

, and slightly raised its price target from $13.00 to $13.75. In the report, “We reiterate our Buy rating on CX and we are increasing our PO from US$13.00 to US$13.75 per ADR on the back of a 6% increase in 2014-2016 estimated EBITDA due to higher expected volumes and prices in US & Mexico supported by: (1) US home prices continue to show positive momentum—Michele Meyer, BofAML's US economist, now expects national home prices to increase 8.0% this year; (2) Housing starts are likely to increase nearly 30% in 2013 to an average of 990K, (3) a stronger Mexican peso driving Mexican results in US dollars (MXN has appreciated YTD by 4% and energy and fiscal reforms could take it to P$12/dollar by year-end); and (4) Mexican cement volumes should regain strength starting next year as Mexico's economy is expected to accelerate in 2014 to 2016 on higher expected US GDP growth, new investments in energy, and infrastructure supported by an expected energy and fiscal reform (4Q13).” Cemex closed on Tuesday at $12.16.