Gerdau S.A. (NYSE:GGB) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Monday. The brokerage presently has a $4.25 price objective on the basic materials company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 8.97% from the company’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 analysts have also issued research reports about the company. BidaskClub raised Gerdau from a “hold” rating to a “buy” rating in a research note on Tuesday, July 11th. Credit Suisse Group lowered Gerdau from an “outperform” rating to a “neutral” rating in a research note on Thursday. J P Morgan Chase & Co raised Gerdau from a “neutral” rating to an “overweight” rating in a research note on Friday, September 1st. Finally, Scotiabank raised Gerdau from an “underperform” rating to a “sector perform” rating in a research note on Friday, June 9th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the company. Gerdau presently has a consensus rating of “Hold” and an average price target of $4.25.

Gerdau (NYSE GGB) traded up 2.56% on Monday, reaching $4.00. 2,985,719 shares of the company were exchanged. The company’s 50-day moving average price is $3.58 and its 200-day moving average price is $3.33. Gerdau has a 12-month low of $2.47 and a 12-month high of $4.39. The stock’s market capitalization is $6.84 billion.

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A number of institutional investors have recently made changes to their positions in GGB. BT Investment Management Ltd purchased a new position in Gerdau during the second quarter valued at $32,817,000. Banco BTG Pactual S.A. purchased a new position in Gerdau during the first quarter valued at $27,600,000. Bank of America Corp DE lifted its position in Gerdau by 118.9% during the first quarter. Bank of America Corp DE now owns 5,409,654 shares of the basic materials company’s stock valued at $18,663,000 after buying an additional 2,938,567 shares during the period. Morgan Stanley lifted its position in Gerdau by 416.0% during the first quarter. Morgan Stanley now owns 3,420,226 shares of the basic materials company’s stock valued at $11,800,000 after buying an additional 2,757,360 shares during the period. Finally, Bogle Investment Management L P DE lifted its position in Gerdau by 75.8% during the first quarter. Bogle Investment Management L P DE now owns 2,950,179 shares of the basic materials company’s stock valued at $10,178,000 after buying an additional 1,272,226 shares during the period. 5.32% of the stock is owned by institutional investors and hedge funds.

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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