Ternium downgraded to Sector Perform from Outperform at Scotiabank

Scotiabank downgraded Ternium (TX) to Sector Perform from Outperform with an unchanged price target of $40. The firm cites a lack of upside to the price target for the downgrade. Scotiabank does not expect a fast United States-Mexico-Canada Agreement renegotiation. Steel tariffs imposed by the U.S. may remain in place, the analyst tells investors in a research note. As a result, the economics of Ternium’s investments in Mexico may be questioned by the market, since the benefits from increased integration can take longer than originally expected to materialize, the analyst tells investors in a research note.