Are you looking for the next big opportunity in the steel industry? Look no further than Ternium, a leading steel producer in Latin America with operations in Argentina, Brazil, Colombia, Guatemala, Mexico, and the U.S. According to analysts at Goldman Sachs and JPMorgan, Ternium has the potential to strengthen its presence in South America, leading to significant upside for its stock.
After reporting better-than-expected prices in key markets like Mexico and Argentina in the first quarter of 2024, Ternium exceeded earnings expectations despite lower overall volume. While the stock has dipped around 5% this year, both Goldman Sachs and JPMorgan see promising potential for growth.
JPMorgan has an outperform rating on Ternium stock, setting a price target of $54 per share, which represents a potential 33% upside from the current price. Meanwhile, Goldman Sachs is bullish on Ternium, with a buy rating and a price target of $51 per share, indicating a potential 27% upside.
Goldman Sachs is particularly optimistic about Ternium’s attractive valuation, 8% dividend yield, and expanding business in Mexico. Despite a lower EBITDA guidance for the second quarter, Goldman still expects Ternium to meet its full-year forecast of $3 billion.
Additionally, Morgan Stanley has an overweight rating on Ternium stock, with a price target of $47 per share, suggesting a potential 17% upside in the near future.
At Extreme Investor Network, we believe that Ternium is a strong contender for investment in the steel industry. With the backing of reputable analysts and a solid track record, Ternium offers promising growth potential for investors looking to diversify their portfolios. Stay ahead of the curve and consider Ternium for your investment strategy.