Ternium Seen Making Brazil Investment

Argentina’s Ternium benefits from its exit from Venezuela and may be looking to invest in Brazil, according to UBS Pactual, which rated the stock a buy. The shop notes a strong Q2 and expects the sale of Sidor to be followed by new investments, with talks of new mill in Brazil. Without Sidor, UBS sees Ternium trading at an attractive 3.7x EV/EBITDA for 08E, which it says is a significant 30% discount to LatAm peers. Ternium Q2 net profit was almost 60% higher.