EU and US could reach trade deal this weekend - Reuters
Ternium S.A. (NYSE: NYSE:TX), a leading steel producer in Latin America with a market capitalization of $5.8 billion, has seen its stock price touch a 52-week low, reaching $27.93 USD. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.89, while offering an attractive dividend yield of 12.13%. This price level reflects a significant downturn from its previous performance, with the company’s shares experiencing a 1-year change of -32.62%. According to InvestingPro Fair Value analysis, the stock appears slightly undervalued at current levels. The decline to this year’s low point underscores the market pressures faced by the steel industry, including fluctuating demand and pricing challenges. Investors are closely monitoring Ternium’s strategic moves to navigate the current economic landscape and improve its stock valuation in the upcoming quarters, with analyst price targets ranging from $32 to $53 and projected earnings per share of $5.93 for FY2025. For deeper insights into Ternium’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Ternium S.A. reported disappointing financial results for the fourth quarter of 2024, with earnings per share (EPS) at -$0.42, significantly missing the forecasted $0.84. The company’s revenue also fell short, coming in at $3.87 billion against expectations of $4.3 billion. This challenging quarter was attributed to lower steel prices and reduced shipment volumes, impacting the company’s margins. Despite these setbacks, Ternium continues to invest in expansion projects in Mexico and Argentina.
In a related development, Citi lowered Ternium’s stock price target to $34 from $37 while maintaining a Buy rating, citing decreased expected EBITDA for 2025 due to market challenges in Mexico and Argentina. Citi’s analysis suggests that despite negative free cash flow projections, Ternium is expected to end the year with net cash. UBS also initiated coverage on Ternium with a Neutral rating and a price target of $32, highlighting the company’s strong asset base and experienced management but noting potential risks from U.S. tariffs.
Both analyst firms expressed concerns about the broader impact of potential U.S. tariffs on Ternium’s clients, especially in downstream industries like the automotive supply chain. Despite these concerns, Ternium remains engaged in a significant reinvestment program, reflecting its strategic focus on long-term growth. These recent developments indicate ongoing challenges for Ternium amid global steel market pressures and trade uncertainties.
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