Ternium (NYSE:TX) Stock Price Expected to Rise, Scotiabank Analyst Says

Key Points

• Scotiabank raised Ternium’s price target to $57 from $40, implying 15.76% upside from the prior close, while maintaining a “sector perform” rating.
• Analysts overall rate the stock a “Moderate Buy”, with six Buy and five Hold ratings and a consensus price target of $57.17.
• Ternium reported quarterly EPS of $1.42, below the $1.79 consensus estimate; revenue of $4.64 billion was nearly in line with forecasts and increased 17.4% year over year.

Ternium (NYSE:TX - Get Free Report) had its price target hoisted by analysts at Scotiabank from $40.00 to $57.00 in a research note issued on Friday, Benzinga reports. The firm currently has a "sector perform" rating on the basic materials company's stock. Scotiabank's price target suggests a potential upside of 15.76% from the company's previous close.

TX has been the subject of a number of other reports. HSBC cut shares of Ternium from a "buy" rating to a "hold" rating and raised their target price for the stock from $53.00 to $55.00 in a report on Friday, August 21st. UBS Group upped their price target on Ternium from $56.00 to $59.00 and gave the company a "neutral" rating in a report on Thursday, August 27th. JPMorgan Chase & Co. increased their price objective on Ternium from $60.50 to $67.50 and gave the company an "overweight" rating in a research report on Friday, September 4th. Weiss Ratings raised Ternium from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, September 10th. Finally, Wall Street Zen upgraded Ternium from a "buy" rating to a "strong-buy" rating in a report on Sunday, July 12th. Six analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $57.17.

Ternium Price Performance

Shares of TX stock traded up $0.60 during mid-day trading on Friday, hitting $49.24. 748,791 shares of the stock traded hands, compared to its average volume of 417,898. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.43 and a current ratio of 2.55. The firm has a market cap of $9.87 billion, a price-to-earnings ratio of 10.09, a price-to-earnings-growth ratio of 0.14 and a beta of 1.17. The company's 50-day simple moving average is $56.04 and its 200-day simple moving average is $47.78. Ternium has a twelve month low of $35.12 and a twelve month high of $60.21.

Ternium (NYSE:TX - Get Free Report) last released its earnings results on Tuesday, November 3rd. The basic materials company reported $1.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.79 by ($0.37). The firm had revenue of $4.64 billion for the quarter, compared to analyst estimates of $4.65 billion. Ternium had a return on equity of 5.77% and a net margin of 5.74%. Ternium's revenue was up 17.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.10 earnings per share. As a group, equities research analysts expect that Ternium will post 6.52 earnings per share for the current year.

Institutional Investors Weigh In On Ternium

A number of institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC boosted its stake in shares of Ternium by 14.9% during the 3rd quarter. GAMMA Investing LLC now owns 2,489 shares of the basic materials company's stock valued at $135,000 after buying an additional 323 shares during the period. Parallel Advisors LLC increased its stake in shares of Ternium by 101.2% in the first quarter. Parallel Advisors LLC now owns 805 shares of the basic materials company's stock worth $32,000 after acquiring an additional 405 shares during the last quarter. QRG Capital Management Inc. increased its stake in shares of Ternium by 7.1% in the first quarter. QRG Capital Management Inc. now owns 7,549 shares of the basic materials company's stock worth $303,000 after acquiring an additional 501 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Ternium in the third quarter worth $40,000. Finally, Royal Bank of Canada raised its holdings in shares of Ternium by 3.6% during the first quarter. Royal Bank of Canada now owns 28,040 shares of the basic materials company's stock worth $1,125,000 after acquiring an additional 968 shares in the last quarter. 11.98% of the stock is currently owned by institutional investors and hedge funds.

About Ternium

Ternium SA is a steel producer serving customers primarily in the Americas. The company manufactures and distributes a broad range of steel products, including flat steel, long steel, galvanized and pre-painted steel, hot- and cold-rolled products, steel bars, wire rod, and tubular products.

Ternium supplies industries such as construction, automotive, appliance manufacturing, energy, transportation, and agriculture. Its operations include iron ore mining, steelmaking, rolling, coating, processing, and distribution, allowing it to offer both commodity and higher-value-added steel products.

The company has industrial and commercial operations across Latin America, including Mexico, Brazil, Argentina, Colombia, and other markets in the region, as well as a presence in the United States and Central America.

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