Goldman Sachs Upgrades Stocks for Buy By Investing.com

Goldman Sachs Upgrades Stocks for Buy By Investing.com
Goldman Sachs Upgrades Stocks for Buy By Investing.com
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Investing.com – Goldman Sachs (NYSE:) has decided to raise its recommendation for Gerdau (BVMF:) shares to buy, with a target price of R$26, as it assesses that the trend of pressure on shares will likely be reversed, given the high investor pessimism regarding the company and the steel cycle. At 11:10 am (Brasília time), preferred shares rose 1.96%, to R$21.38.

“Although it is unlikely that catalysts for this inversion will be seen in the short term, we consider that current valuation levels are attractive”, points out the bank.

Gerdau’s reversal cycle could be driven, according to Goldman, by the rise in import tariffs, in addition to an increase in domestic prices in Brazil and revisions in projections related to operations in North America.

According to analysts Marcio Farid, Gabriel Simoes and Henrique Marques, prices have fallen 29% since GS downgraded the shares to a neutral recommendation in February 2023. “At the time, our expectations were of a negative results review cycle that would lead to below-normal profitability”, recall the analysts.

“Consensus EBITDA expectations for 2024 for Gerdau have been lowered by around 20% compared to the June 2023 peak, to now around R$10.5 billion. But our conversations with investors suggest that their earnings expectations are lower than the seller’s consensus”, add the analysts, who see the revisions as complete.

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The article is in Portuguese

Tags: Goldman Sachs Upgrades Stocks Buy Investing .com

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