Gerdau S.A. (NYSE:GGB) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The firm presently has a $4.00 price objective on the basic materials company’s stock. Zacks Investment Research‘s price target suggests a potential upside of 12.36% from the stock’s current price.

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 stock. BidaskClub lowered shares of Gerdau from a “buy” rating to a “hold” rating in a research note on Monday, July 24th. Scotiabank upgraded shares of Gerdau from an “underperform” rating to a “sector perform” rating in a research note on Friday, June 9th. One research analyst has rated the stock with a sell rating and four have given a hold rating to the company. Gerdau has an average rating of “Hold” and a consensus target price of $4.00.

Gerdau (GGB) opened at 3.56 on Monday. The company has a 50-day moving average price of $3.45 and a 200-day moving average price of $3.37. The firm’s market capitalization is $6.08 billion. Gerdau has a 12-month low of $2.47 and a 12-month high of $4.39.

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Several hedge funds and other institutional investors have recently made changes to their positions in GGB. Global X Management Co. LLC raised its position in shares of Gerdau by 6.2% in the second quarter. Global X Management Co. LLC now owns 34,134 shares of the basic materials company’s stock valued at $104,000 after buying an additional 1,997 shares during the period. Stevens Capital Management LP acquired a new position in shares of Gerdau during the second quarter valued at approximately $104,000. Wright Investors Service Inc. acquired a new position in shares of Gerdau during the first quarter valued at approximately $113,000. Lazard Asset Management LLC raised its position in shares of Gerdau by 108.5% in the second quarter. Lazard Asset Management LLC now owns 41,700 shares of the basic materials company’s stock valued at $127,000 after buying an additional 21,700 shares during the period. Finally, Envestnet Asset Management Inc. raised its position in shares of Gerdau by 5.7% in the first quarter. Envestnet Asset Management Inc. now owns 41,695 shares of the basic materials company’s stock valued at $144,000 after buying an additional 2,236 shares during the period. Institutional investors own 5.32% of the company’s stock.

About Gerdau

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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