Ternium S.A. (NYSE: TX), Netflix, Inc. (NASDAQ: NFLX), Amazon.com, Inc. (NASDAQ: AMZN), CBS (NYSE: CBS) and Cisco Systems, Inc. (NASDAQ: CSCO) had their price targets changed by analysts.
Goldman Sachs (NYSE:GS) raised their price target on Netflix, Inc. (NFLX) to $330.00. They have a “buy” rating on the company.
The Benchmark Company raised their price target on Amazon.com, Inc. (AMZN) from $212.00 to $246.00. They have a “buy” rating on the company.
Needham & Company analysts raised their price target on CBS (CBS) from $28.00 to $35.00. They have a “buy” rating on the company.
Deutsche Bank (NYSE:DB) cut their price target on Cisco Systems, Inc. (CSCO) to $18.00.
Barclays Capital cut their price target on Ternium S.A. (TX) from $43.00 to $39.00. They have an “overweight” rating on the company.
Netflix closed Monday at $2.90.74, falling $4.40, or 1.49 percent. Amazon.com closed at $212.55, losing $5.73, or 2.63 percent. CBS ended the day at $27.94, down $0.73, or 2.55 percent. Cisco closed at $15.43, dropping $0.31, or 1.97 percent. Ternium closed at $29.43, plunging $1.07, or 3.51 percent.
Showing posts with label Ternium SA. Show all posts
Showing posts with label Ternium SA. Show all posts
Tuesday, July 12, 2011
Wednesday, May 18, 2011
Ternium S.A. (TX) Faces Cost, Price Volatility
Ternium S.A. (NYSE:TX) is under pressure with the rest of the steel sector as costs mount for raw materials and steel demand slows.
A lot of uncertainty surrounds the steel industry based on the guidance given by the largest steelmaker in the world - ArcelorMittal (NYSE:MT). Even after beating estimates for the latest quarter the stock was punished on a weak outlook, dragging down much of the sector with it.
Softer steel prices in North America and Europe point to major challenges going forward for steel companies, as margins will continue to come under pressure.
According to Banco Santander SA, costs of coking coal jumped 68 percent and iron ore 77 percent in the first quarter of 2011.
The steel industry is projected to grow at a 5.9 percent clip this year, says the World Steel Association. Some think that's at the high end of the spectrum.
Pricing will remain a challenge in light of the new pricing system put in place where steelmakers say it's harder to pass on costs to customers because of difficulty in projecting costs.
Expectations are the second half of 2011 will be slow for the industry.
Ternium S.A. participates in the manufacture and processing of flat and long steel products for construction, home appliances, capital goods, container, food, energy, and automotive industries.
Ternium S.A. (TX) closed Wednesday at $32.30, down $0.74, or 2.24 percent.
A lot of uncertainty surrounds the steel industry based on the guidance given by the largest steelmaker in the world - ArcelorMittal (NYSE:MT). Even after beating estimates for the latest quarter the stock was punished on a weak outlook, dragging down much of the sector with it.
Softer steel prices in North America and Europe point to major challenges going forward for steel companies, as margins will continue to come under pressure.
According to Banco Santander SA, costs of coking coal jumped 68 percent and iron ore 77 percent in the first quarter of 2011.
The steel industry is projected to grow at a 5.9 percent clip this year, says the World Steel Association. Some think that's at the high end of the spectrum.
Pricing will remain a challenge in light of the new pricing system put in place where steelmakers say it's harder to pass on costs to customers because of difficulty in projecting costs.
Expectations are the second half of 2011 will be slow for the industry.
Ternium S.A. participates in the manufacture and processing of flat and long steel products for construction, home appliances, capital goods, container, food, energy, and automotive industries.
Ternium S.A. (TX) closed Wednesday at $32.30, down $0.74, or 2.24 percent.
Thursday, May 5, 2011
Steel's (TX) (SYNL) (ROCK) (CHOP) (STLD) and China Demand
As goes China so goes the demand for steel, and in that regard it doesn't look good for steel companies like Ternium S.A. (NYSE:TX), Synalloy Corp. (Nasdaq:SYNL), Gibraltar Industries, Inc. (Nasdaq:ROCK), China Gerui Advanced Materials (Nasdaq:CHOP) and Steel Dynamics (NASDAQ:STLD), which are going to be pressured in the years ahead from declining demand from the Middle Kingdom.
According to the China Iron & Steel Association, the Chinese government is pushing to slow down economic growth, which will result in demand for steel in the country to slow down.
Estimates under the current scenario for the steel sector have steel consumption declining in China by a minimum of 2.6 percent to as high as 4.6 percent in 2011.
Globally it doesn't look good for the next five years or so either, as the top estimates are for steel demand to grow at a 5 percent rate annually, although many think it'll be less than that.
In the short term, the U.S. steel industry should ship product at 14 percent above 2010 levels, reaching about 95 million tons in 2011.
All the companies are being affected by soaring iron ore prices and other inputs, which are putting stress on margins and earnings because buyers are hesitating to acquire product at too high of prices; something that will continue for several years.
For the steel industry, there isn't much to be optimistic about, no matter how the situation is spun. It's going to remain tough for some time.
Steel Dynamics closed Wednesday at $17.36, falling $0.41, or 2.31 percent.
According to the China Iron & Steel Association, the Chinese government is pushing to slow down economic growth, which will result in demand for steel in the country to slow down.
Estimates under the current scenario for the steel sector have steel consumption declining in China by a minimum of 2.6 percent to as high as 4.6 percent in 2011.
Globally it doesn't look good for the next five years or so either, as the top estimates are for steel demand to grow at a 5 percent rate annually, although many think it'll be less than that.
In the short term, the U.S. steel industry should ship product at 14 percent above 2010 levels, reaching about 95 million tons in 2011.
All the companies are being affected by soaring iron ore prices and other inputs, which are putting stress on margins and earnings because buyers are hesitating to acquire product at too high of prices; something that will continue for several years.
For the steel industry, there isn't much to be optimistic about, no matter how the situation is spun. It's going to remain tough for some time.
Steel Dynamics closed Wednesday at $17.36, falling $0.41, or 2.31 percent.
Monday, May 2, 2011
Steel Firms (IIIN) (MTL) (SUTR) (TS) (TX) Pressured on Low Growth Outlook
The steel sector, even with some strong recent quarters from companies, looks weak, as over the next five years it is projected to grow at a pace of about 5 percent or less annually, placing downward pressure on steel producers like Insteel Industries Inc. (Nasdaq:IIIN), Mechel OAO (NYSE:MTL), Sutor Technology Group, Ltd. (Nasdaq:SUTR), Tenaris SA (NYSE:TS) and Ternium S.A. (NYSE:TX). And that's the more positive outlook by most analysts. A large number don't believe growth will even happen at that rate.
A majority of steel companies are being pressured to increase prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling completely, because it's not. But rising demand in some segments doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand in some segments, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
Tenaris SA closed Friday at $50.79, gaining $0.73, or 1.46 percent.
A majority of steel companies are being pressured to increase prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling completely, because it's not. But rising demand in some segments doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand in some segments, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
Tenaris SA closed Friday at $50.79, gaining $0.73, or 1.46 percent.
Friday, April 29, 2011
Ternium (TX) (STLD) (SIM) (CMC) (TS) Pressured on Low Growth Steel Outlook
The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel companies like Ternium S.A. (NYSE:TX), Steel Dynamics Inc. (Nasdaq:STLD), Grupo Simec S.A.B. de C.V. (AMEX:SIM), Commercial Metals Company (NYSE:CMC) and Tenaris SA (NYSE:TS); although they traded a little stronger Thursday.
A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
It also looks like the U.S. economy is starting to sputter again, and that's not good news for the steel industry either.
A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
It also looks like the U.S. economy is starting to sputter again, and that's not good news for the steel industry either.
Wednesday, April 27, 2011
Ternium (TX) (MTL) (ROCK) (CPSL) Close Mixed on Growth, Cost Concerns
The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel producers like Ternium S.A. (NYSE:TX), Mechel OAO (NYSE:MTL), Gibraltar Industries, Inc. (Nasdaq:ROCK) and China Precision Steel, Inc. (Nasdaq:CPSL), which closed mixed on Tuesday. And that's the more positive outlook by the majority of analysts. Many don't think growth will even happen at those modest levels.
A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
Of course there a large varieties of companies with steel exposure, and each segment of the sector can represent strengths or weaknesses. So each unit and company will have to be watched closely for performance of course.
There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years even in the midst of strong demand as it attempts to work through the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
Some winners will emerge, but over time it's not easy to pick any one that's going to stand out. Some have looked to larger companies who may be able to navigate through the higher costs better, but we'll see if that's the case, as it isn't always that simple because of the wide variety of products and costs and pricing power with each one.
A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
Of course there a large varieties of companies with steel exposure, and each segment of the sector can represent strengths or weaknesses. So each unit and company will have to be watched closely for performance of course.
There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years even in the midst of strong demand as it attempts to work through the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
Some winners will emerge, but over time it's not easy to pick any one that's going to stand out. Some have looked to larger companies who may be able to navigate through the higher costs better, but we'll see if that's the case, as it isn't always that simple because of the wide variety of products and costs and pricing power with each one.
Monday, April 25, 2011
Ternium (TX) (MTL) (SID) (AKS) Pressured on Low Growth Outlook
The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel producers like Ternium S.A. (NYSE:TX), Mechel OAO (NYSE:MTL), Companhia Siderurgica Nacional (NYSE:SID) and AK Steel Holding Corporation (NYSE:AKS), even with a couple of decent quarterly results coming from their peers, like Steel Dynamics (NASDAQ:STLD). And that's the more positive outlook by the majority of analysts. Many don't think growth will happen even at that rate.
A majority of steel companies are being pressured to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities jump.
That's not to say steel demand is falling, because it's not. But the slowly rising demand doesn't guarantee rising profits, as the industry is experiencing at this time. A number of weak economies around the world could also cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years, even in the midst of better demand, as it attempts to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from the producers.
Ternium S.A. closed Thursday at $33.67, falling $0.01, or 0.03 percent. Mechel OAO ended the session at $28.98, gaining $0.23, or 0.80 percent. AK Steel Holding Corporation closed at $30.86, dropping $0.11, or 0.68 percent. Gerdau S.A. closed at $15.94, up $0.07, or 0.44 percent.
A majority of steel companies are being pressured to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities jump.
That's not to say steel demand is falling, because it's not. But the slowly rising demand doesn't guarantee rising profits, as the industry is experiencing at this time. A number of weak economies around the world could also cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years, even in the midst of better demand, as it attempts to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from the producers.
Ternium S.A. closed Thursday at $33.67, falling $0.01, or 0.03 percent. Mechel OAO ended the session at $28.98, gaining $0.23, or 0.80 percent. AK Steel Holding Corporation closed at $30.86, dropping $0.11, or 0.68 percent. Gerdau S.A. closed at $15.94, up $0.07, or 0.44 percent.
Thursday, April 21, 2011
US Steel (X) (TS) (TX) (HSC) Get Boost from Steel Consumption Report, (STLD)
Investors have suddenly become steel industry and company believers after the performance of Steel Dynamics, Inc. (Nasdaq:STLD) and the release of estimates for glow steel production by the World Steel Association, which pushed up the share prices of US Steel (NYSE:X), Tenaris SA (NYSE:TS), Ternium S.A. (NYSE:TX) and Harsco Corporation (NYSE:HSC) Wednesday.
Steel Dynamics gave as its reason for the optimism as growing backlogs in the company’s structural and rail division, but quietly added some of that could have been weather-related.
Also the projected global steel consumption growth of 5.9 percent didn't included the potential devastating effect the slowdown in Japan will have, as it's the largest consumer of steel in the world. Without that, the numbers are pretty meaningless. And it will take time, as with everything related to Japan at this time, before we know the full impact on steel and other sectors.
Harsco Corporation closed Wednesday at $33.97, gaining $0.27, or 0.80 percent. Ternium S.A. ended the day at $33.68, up $0.81, or 2.46 percent. Tenaris SA closed at $49.35, jumping $0.61, or 1.25 percent. US Steel closed the session at $52.75, rising $0.01, or 0.02 percent.
Steel Dynamics gave as its reason for the optimism as growing backlogs in the company’s structural and rail division, but quietly added some of that could have been weather-related.
Also the projected global steel consumption growth of 5.9 percent didn't included the potential devastating effect the slowdown in Japan will have, as it's the largest consumer of steel in the world. Without that, the numbers are pretty meaningless. And it will take time, as with everything related to Japan at this time, before we know the full impact on steel and other sectors.
Harsco Corporation closed Wednesday at $33.97, gaining $0.27, or 0.80 percent. Ternium S.A. ended the day at $33.68, up $0.81, or 2.46 percent. Tenaris SA closed at $49.35, jumping $0.61, or 1.25 percent. US Steel closed the session at $52.75, rising $0.01, or 0.02 percent.
Wednesday, April 20, 2011
Mechel (MTL) (ZEUS) (TS) (TX) (WOR) Up on Steel Dynamics' Results
Even though the results of Steel Dynamics (NASDAQ:STLD) gave steel stocks like Mechel OAO (NYSE:MTL), Olympic Steel Inc. (Nasdaq:ZEUS), Tenaris SA (NYSE:TS), Ternium S.A. (NYSE:TX) and Worthington Industries, Inc. (NYSE:WOR) a big boost Tuesday, overall, the steel industry looks weak over the next five years, as it is expected to grow at a pace of 5 percent or less annually, putting downward pressure on steel producers like. And that's the more optimistic outlook by analysts. Most don't think growth will be at that rate.
Most steel companies are being forced to raise prices on their products in order to protect margins and earnings, as the price of inputs and commodities rise.
That's not to say steel demand is dropping, because it's not. But rising demand doesn't guarantee rising profits, as the industry is finding out. Weak economies around the world could cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin this in a positive manner. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
As for Steel Dynamics, it admits bad weather in February could have been the reason for the jump in March shipments. Even if steel companies in general have a good quarter to report, it's very doubtful it has changed the outlook over the next several years. It could be a chance to make some quick money though.
Steel Dynamics (NASDAQ:STLD) closed Tuesday at $18.46, gaining $1.00, or 5.73 percent. Worthington Industries, Inc. closed at $20.66, rising $0.59, or 2.94 percent. Ternium S.A. closed at $32.87, jumping $0.32, or 0.98 percent. Tenaris SA ended the session at $48.74, increasing $0.89, or 1.86 percent. Olympic Steel Inc. closed at $30.56, gaining $0.02, or 0.07 percent. Mechel OAO closed at $28.06, gaining $0.77, or 2.82 percent.
Most steel companies are being forced to raise prices on their products in order to protect margins and earnings, as the price of inputs and commodities rise.
That's not to say steel demand is dropping, because it's not. But rising demand doesn't guarantee rising profits, as the industry is finding out. Weak economies around the world could cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin this in a positive manner. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
As for Steel Dynamics, it admits bad weather in February could have been the reason for the jump in March shipments. Even if steel companies in general have a good quarter to report, it's very doubtful it has changed the outlook over the next several years. It could be a chance to make some quick money though.
Steel Dynamics (NASDAQ:STLD) closed Tuesday at $18.46, gaining $1.00, or 5.73 percent. Worthington Industries, Inc. closed at $20.66, rising $0.59, or 2.94 percent. Ternium S.A. closed at $32.87, jumping $0.32, or 0.98 percent. Tenaris SA ended the session at $48.74, increasing $0.89, or 1.86 percent. Olympic Steel Inc. closed at $30.56, gaining $0.02, or 0.07 percent. Mechel OAO closed at $28.06, gaining $0.77, or 2.82 percent.
Wednesday, January 12, 2011
Vale (Nasdaq:VALE), Ternium (NYSE:TX), CSN (EW) Top Iron Ore, Steel Picks for Barclays (NYSE:BCS)
Commenting on Latin America Metals & Mining, Barclays (NYSE:BCS) said their top pick for iron ore is Vale (Nasdaq:VALE), and for steel: Ternium (NYSE:TX) and CSN (EW).
Barclays says, "Iron ore - Record shipments to China; Strong exports to Europe; Japan flattish: Brazilian iron ore exports during December were the highest in 2010 (second highest ever) at 32.2Mt, +30% m/m...Flats steel imports surprisingly high: Flat steel imports amounted to 287kt, +3% m/m and roughly 2x higher y/y...Long steel imports ease - A positive signal that pricing discounts were effective: Long steel imports (ex-railway components /tubes) came in at 43kt in December, -38% m/m.
"Valuations and fundamentals still favor iron ore miners over steels, in our view. Although we were negatively surprised with the import data (for flats), we still believe the bounce trade in steels should continue until the earnings season, which we believe will be very weak (below expectations). We reiterate Vale (Overweight) as our high-conviction call for 2011, as we view valuation as attractive (on 5.5x EBITDA 11) and expect earnings upgrades. For steels, we prefer Ternium S.A. (Overweight) and CSN (EW)."
VALE S.A. was trading at $36.51, up $1.18, or 3.34 percent, as of 2:10 PM EST. Ternium was trading at $43.32, up $0.45, or 1.05, as of 1:50 PM EST.
Barclays says, "Iron ore - Record shipments to China; Strong exports to Europe; Japan flattish: Brazilian iron ore exports during December were the highest in 2010 (second highest ever) at 32.2Mt, +30% m/m...Flats steel imports surprisingly high: Flat steel imports amounted to 287kt, +3% m/m and roughly 2x higher y/y...Long steel imports ease - A positive signal that pricing discounts were effective: Long steel imports (ex-railway components /tubes) came in at 43kt in December, -38% m/m.
"Valuations and fundamentals still favor iron ore miners over steels, in our view. Although we were negatively surprised with the import data (for flats), we still believe the bounce trade in steels should continue until the earnings season, which we believe will be very weak (below expectations). We reiterate Vale (Overweight) as our high-conviction call for 2011, as we view valuation as attractive (on 5.5x EBITDA 11) and expect earnings upgrades. For steels, we prefer Ternium S.A. (Overweight) and CSN (EW)."
VALE S.A. was trading at $36.51, up $1.18, or 3.34 percent, as of 2:10 PM EST. Ternium was trading at $43.32, up $0.45, or 1.05, as of 1:50 PM EST.
Wednesday, December 8, 2010
Ternium (NYSE:TX) Desirable Only on Steel Price Bounce Says Barclays (NYSE:BCS)
With little effect from global steel prices in Brazil at this time, Barclays (NYSE:BCS) said they wouldn't buy Ternium (NYSE:TX) unless it was on a steel price bounce.
Barclays said, "TX is the most leveraged steel maker in our coverage universe to the recovery in global steel prices, with an EBITDA exposure to North America of approximately 55-60% (mainly spot based contracts). As a result of the unfavorable domestic inventory trends (I/S ratio at 4-months), Brazilian steel pricing dynamics should remain fairly insulated from global movements...We maintain our call that the Brazilian steel sector should bottom in 1Q11 (not in the 4Q10) and that the destocking cycle should only end by 2Q11. We reiterate our preference for non-Brazil steel exposure and would be buyers of Ternium into the bounce in steel prices."
Barclays reiterates their "Overweight" on Ternium, which closed Tuesday at $38.12, up $0.07, or 0.18 percent. They have a price target of $45 on them.
Barclays said, "TX is the most leveraged steel maker in our coverage universe to the recovery in global steel prices, with an EBITDA exposure to North America of approximately 55-60% (mainly spot based contracts). As a result of the unfavorable domestic inventory trends (I/S ratio at 4-months), Brazilian steel pricing dynamics should remain fairly insulated from global movements...We maintain our call that the Brazilian steel sector should bottom in 1Q11 (not in the 4Q10) and that the destocking cycle should only end by 2Q11. We reiterate our preference for non-Brazil steel exposure and would be buyers of Ternium into the bounce in steel prices."
Barclays reiterates their "Overweight" on Ternium, which closed Tuesday at $38.12, up $0.07, or 0.18 percent. They have a price target of $45 on them.
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