This building materials stock has pricing power and can jump 40%, Goldman Sachs says

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This building materials stock has pricing power and can jump 40%, Goldman Sachs says
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The firm upgraded this concrete maker to buy after the firm's strong first-quarter results.

It's time to buy Cemex , according to Goldman Sachs. Analyst Bruno Amorim upgraded Cemex to buy after the company's strong first-quarter results, citing strong pricing power amid easing inflation for the concrete and building materials company. "[We] upgrade Cemex to Buy reflecting a better than expected pricing environment as evidenced by 1Q23 results," Amorim wrote in a Wednesday note.

-listed shares of Cemex are surging this year, higher by 55%. In 2022, they tumbled 40%. Shares gained more than 1% on the upgrade. Meanwhile, the analyst's 12-month price target of $9 implies shares could jump 43% from Wednesday's close. Cemex this week reported first-quarter results that topped analysts' expectations. It posted operating EBITDA of $733 million, more than the $644 million consensus from FactSet. It reported revenue of $4.04 billion compared to a forecast of $3.

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