Gerdau: Up, And Back Down Again In 2026E (Rating Upgrade)

Gerdau is upgraded to 'buy' with a new price target of $3.6/share, reflecting improved external factors and conservative valuation. GGB's volatility stems from strong US operations offset by systemic Brazilian market challenges, notably Chinese steel imports and recent gross profit declines. Recent Brazilian anti-dumping duties, import quotas, and government housing initiatives are expected to bolster domestic steel demand and support GGB's 2026E outlook.