Wells Fargo & Company Issues Pessimistic Forecast for Ternium (NYSE:TX) Stock Price

Key Points

• Wells Fargo cut its Ternium price target from $56 to $52 and maintained an “equal weight” rating; the new target implies 5.69% upside from the cited share price.
• Analyst sentiment overall remains moderately positive: six analysts rate the stock Buy and five Hold, with a consensus price target of $55.28.
• Ternium reported quarterly EPS of $1.42, below the $1.79 consensus estimate, while revenue of $4.64 billion was near expectations and rose 17.4% year over year.

Ternium (NYSE:TX - Get Free Report) had its price objective reduced by equities researchers at Wells Fargo & Company from $56.00 to $52.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has an "equal weight" rating on the basic materials company's stock. Wells Fargo & Company's price target would suggest a potential upside of 5.69% from the stock's current price.

Several other equities research analysts have also recently weighed in on TX. Zacks Research cut shares of Ternium from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 13th. Weiss Ratings upgraded shares of Ternium from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, September 10th. Wall Street Zen raised shares of Ternium from a "buy" rating to a "strong-buy" rating in a research note on Sunday, July 12th. HSBC cut shares of Ternium from a "buy" rating to a "hold" rating and raised their price target for the stock from $53.00 to $55.00 in a research note on Friday, August 21st. Finally, JPMorgan Chase & Co. upped their price target on Ternium from $60.50 to $67.50 and gave the company an "overweight" rating in a research report on Friday, September 4th. Six investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $55.28.

Ternium Stock Performance

Shares of NYSE TX traded down $2.20 during trading hours on Thursday, hitting $49.20. 265,213 shares of the stock were exchanged, compared to its average volume of 412,134. The firm has a market capitalization of $9.86 billion, a P/E ratio of 10.10, a P/E/G ratio of 0.14 and a beta of 1.17. Ternium has a one year low of $35.12 and a one year high of $60.21. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.58 and a quick ratio of 1.43. The company's 50 day moving average is $56.17 and its 200 day moving average is $47.74.

Ternium (NYSE:TX - Get Free Report) last released its quarterly 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). Ternium had a net margin of 5.74% and a return on equity of 5.82%. The firm had revenue of $4.64 billion for the quarter, compared to the consensus estimate of $4.65 billion. During the same quarter last year, the company earned $0.10 earnings per share. The firm's revenue was up 17.4% on a year-over-year basis. On average, research analysts expect that Ternium will post 6.52 EPS for the current year.

Institutional Investors Weigh In On Ternium

A number of institutional investors have recently made changes to their positions in TX. Donald Smith & CO. Inc. bought a new position in shares of Ternium during the second quarter worth about $134,131,000. Engineers Gate Manager LP lifted its stake in Ternium by 496.8% in the 2nd quarter. Engineers Gate Manager LP now owns 56,337 shares of the basic materials company's stock valued at $2,406,000 after acquiring an additional 46,897 shares in the last quarter. Wellington Management Group LLP bought a new stake in Ternium in the 2nd quarter valued at approximately $5,704,000. Militia Capital Management LLC acquired a new position in Ternium during the 1st quarter worth approximately $1,486,000. Finally, Nykredit A S acquired a new position in Ternium during the 2nd quarter worth approximately $10,564,000. 11.98% of the stock is owned by institutional investors and hedge funds.

Ternium Company Profile

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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