Ternium downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Carlos De Alba downgraded Ternium (TX) to Equal Weight from Overweight with an unchanged price target of $34. The firm sees a “persistently challenging” Brazil steel industry outlook due to elevated imports from China. Steel imports from free-trade zones and countries with bilateral trade agreements incentivizes transhipments and will keep imports at elevated levels, the analyst tells investors in a research note. Morgan Stanley cites limited upside to the price target for the downgrade of Ternium.