U.S.-traded shares of industrial metals companies with operations in Latin America advanced on Friday after an analyst raised his price target on steel pipe maker Tenaris SA, citing its higher product prices.
Jefferies analyst Cindy Du increased her target to $70 from $61, implying upside of 16 percent from the stock's Thursday closing price.
Du forecast oil pipe prices growing 7 percent to 8 percent in June, following double-digit price hikes in May and April.
"Manufacturers have not backed down on additional surcharges," she said, predicting that the higher prices will more than offset higher raw material costs.
ADRs of Tenaris rose 93 cents to $61.30. Shares hit a fresh all-time high of $62.28 earlier in the session. ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of companies based overseas.
Other Latin America-based ADRs rose Friday. Brazil's Companhia Siderurgica Nacional rose 12 cents to $49.17.
Ternium SA climbed 24 cents to $44.39.
The Bank of New York Latin America ADR Index gained 3.19 points to 499.57.
The Bank of New York Composite ADR Index added .94 to 182.86.
Terms & Conditions
RSS Headlines
Fool UK