ADRs in Focus: Ternium climbs after upgrade

U.S.-traded shares of Argentina-based Ternium SA rose to a 52-week high on Thursday after a Goldman Sachs analyst upgraded the steel maker, predicting steel prices will remain elevated.

Shares of Ternium rose $2.24, or 5.4 percent, to $43.51 after hitting a fresh 52-week high of $43.88 earlier in the session.

In a note to investors, Marcelo Aguiar raised Ternium to "Buy" from "Neutral" and reiterated his "Attractive" view of the broader Latin American steel sector.

Aguiar said a tighter-than-expected global steel market will likely keep steel pricey through 2009, and upgraded his domestic price forecasts by 10 percent for both flat and long steel products.

Ternium is undervalued compared to the broader sector, he said, and raised his price target to $56 from $38. The target implies an expected return of about 35 percent from Wednesday's close of $41.27.

Shares bucked the broader trend among emerging markets ADRs. The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in Brazil, Russia, India and elsewhere _ fell 2.06 points to 384.13.

ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of companies based overseas.

The Bank of New York Composite ADR Index rose 1.15 to 185.25.