Two Alternative Ways To Play Latin American Growth With NYSE-Traded Argentine Stocks

In a previous article, we took at look at two big Argentinian companies that are traded in U.S. stock exchanges, and could stand as attractive investment options. In this article, we will look into three more ways to play Latin American development.

Cresud

Cresud S.A.C.I.F. y A. CRESY is a $743 million market cap agricultural company engaged in the production of basic agricultural commodities, with a growing presence in the Brazilian agricultural sector. Although it is highly leveraged, Morgan Stanley issued an Overweight recommendation for the stock in early-2014, setting a price target of $18.60. The stock currently trades around $10.14 in the NYSE.

Tenaris S.A. and Ternium S.A.

Although Tenaris S.A. TS and Ternium S.A. TX are international companies, legally headquartered in Luxembourg, they are –also- two more ways to invest in Argentinian stocks. These companies are both traded in the Buenos Aires stock exchange, in addition to the NYSE.

Tenaris is a $17.8 billion market cap holding company engaged in the steel pipe manufacturing and distributing businesses. During most of 2014, the stock traded above $40, and Guggenheim Securities saw it rising to $55. However, the stock plummeted since mid-September, losing about 35 percent.

After the fall, ISI Group initiated coverage on the stock with a Hold rating and a $41 price target. The stock now trades slightly below $30.

Ternium is a $3.55 billion market cap steel producer in Latin America, which also saw its stock tumble over 2014, losing almost 43 percent. Until October, Credit Suisse had an Outperform rating on the stock, and JP Morgan, an Overweight. They both downgraded the stock to a Neutral in October, and the latter issued a $24.50 price target, which implies an upside potential of almost 40 percent from the current price point.