Gerdau S.A. (NYSE:GGB) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The brokerage currently has a $4.25 price objective on the basic materials company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 9.82% from the stock’s previous close.
According to Zacks, “Year to date, Gerdau's American Depository Receipts (ADR) have outperformed the industry. We believe that the company's product portfolio and manufacturing techniques will help it grow over the long term. Its international diversity provides support to the top line. Also, its strategy of disposing loss-making assets/businesses will enable it to focus on the profitable ones. Going forward, any investment by the government in infrastructure improvements will boost steel demand in these regions, thereby creating lucrative market conditions for steel producers like Gerdau. For 2017, Gerdau expects capital expenditure to be R$1.3 billion. Over the last 60 days, earnings estimates on the stock improved for both 2017 and 2018.”
Other research analysts have also issued research reports about the company. BidaskClub lowered Gerdau from a “buy” rating to a “hold” rating in a research report on Monday, July 24th. Scotiabank upgraded Gerdau from an “underperform” rating to a “sector perform” rating in a research report on Friday, June 9th. Credit Suisse Group lowered Gerdau from an “outperform” rating to a “neutral” rating in a research report on Thursday, September 7th. Finally, J P Morgan Chase & Co upgraded Gerdau from a “neutral” rating to an “overweight” rating in a research report on Friday, September 1st. One research analyst has rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $4.25.
Shares of Gerdau (NYSE:GGB) opened at 3.87 on Monday. The stock’s 50 day moving average price is $3.59 and its 200 day moving average price is $3.33. The stock’s market cap is $6.61 billion. Gerdau has a 1-year low of $2.47 and a 1-year high of $4.39.
A number of large investors have recently added to or reduced their stakes in GGB. Global X Management Co. LLC boosted its position in Gerdau by 6.2% during the 2nd quarter. Global X Management Co. LLC now owns 34,134 shares of the basic materials company’s stock valued at $104,000 after purchasing an additional 1,997 shares during the period. Stevens Capital Management LP acquired a new position in Gerdau during the 2nd quarter valued at approximately $104,000. Lazard Asset Management LLC boosted its position in Gerdau by 108.5% during the 2nd quarter. Lazard Asset Management LLC now owns 41,700 shares of the basic materials company’s stock valued at $127,000 after purchasing an additional 21,700 shares during the period. Envestnet Asset Management Inc. boosted its position in Gerdau by 5.7% during the 1st quarter. Envestnet Asset Management Inc. now owns 41,695 shares of the basic materials company’s stock valued at $144,000 after purchasing an additional 2,236 shares during the period. Finally, Tower Research Capital LLC TRC acquired a new position in Gerdau during the 2nd quarter valued at approximately $152,000. Institutional investors and hedge funds own 5.32% of the company’s stock.
Gerdau Company Profile
Gerdau SA (Gerdau) is a manufacturer of long steel in the North and South America. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Chile, Colombia, Spain, the United States, Guatemala, India, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela.
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