Ternium downgraded to Market Perform after rally at Itau BBA

Itau BBA last night downgraded Ternium to Market Perform from Outperform with a price target of $49, up from $40. After the 47% share price appreciation year-to-date, Ternium needs "some time to breathe," the analyst tells investors in a research note. The firm believes Ternium’s new upstream project is likely to yield higher EBITDA margins in the long term, but it sees limited free cash flow generation from 2023 to 2026 due to the project’s intensive capex requirements.