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LivestreamMenuTariff negotiations between the U.S. and Mexico could give Ternium a boost, according to Morgan Stanley. The investment bank upgraded the steel producer to overweight from equal weight. It also raised its price target on shares to $65 from $55, implying roughly 20% upside from Thursday’s close. “As tariff negotiations progress among member countries of the [United States-Mexico-Canada Agreement], we see a high probability that the US will reduce import tariffs on Mexican steel, driving price hikes in Mexico’s domestic steel prices and benefitting Ternium’s profitability,” analyst Carlos De Alba said Thursday in a note to clients. TX YTD mountain TX in 2026 The analyst added that signs of a tariff reduction follow the recent completion of Ternium’s investment cycle, which also stands to drive value to the company’s shares. The expected trade tax change by the U.S. is also likely to encourage Mexico to increase its own steel import tariffs to 50%, up from a range of 25% to 35%, according to Morgan Stanley. That would, in turn, “tighten the Mexican steel market and push local prices closer to those in the US, leading to materially higher profitability for Ternium,” De Alba wrote. Morgan Stanley’s call falls in line with consensus on Wall Street. Of the 16 analysts covering Ternium, seven have a buy or strong buy on the stock, while six have a hold rating on it, LSEG data shows. Shares have risen 42% year to date. The stock ticked higher by more than 1% following the upgrade.Read More
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