Reuters reported that Morgan Stanley has upgraded Latin American steelmaker Ternium to 'overweight' from 'equal weight', citing improvement in steel markets and expected increase in cash collection from the sale of its Sidor unit.
It may be noted that Ternium sold its stake in Sidor for USD 1.97 billion in May 2009 amid labor problems.
Mr Carlos De Alba analyst said that "Sidor sale will increase Ternium's cash balance to USD 2.8 billion by the end of 2010. Therefore, we expect Ternium to have the strongest balance sheet in our steel coverage universe."
For 2009, the brokerage raised its EBITDA estimates for the company by 1%, while 2010 forecast was raised by 2%.
