Ternium initiated with an Underweight at Wells Fargo

Wells Fargo analyst Timna Tanners initiated coverage of Ternium with an Underweight rating and $30 price target The firm launched coverage on the U.S. steel names, saying it sees near-term support for U.S. steel prices despite weak demand. Wells expects more positives than negatives for the group into year-end as tariff benefits “kick in on a lag.” Over the medium term, there will be more domestic supply in 2026 with demand improving in 2027, the analyst tells investors in a research note. Wells prefers names with U.S. exposure and named Commercial Metals (CMC) and Steel Dynamics (STLD) top picks. The firm is less confident on the more global players Ternium (TX) and ArcelorMittal (MT). Ternium shares are pricing in too much optimism for a recovery to more “normal” market conditions, contends the firm.