Goldman Sachs analyst Marcio Farid downgraded Gerdau to Neutral from Buy with a price target of R$31, down from R$38. The stock has risen 8% since being added to the Buy list, outperforming the average LatAm steel peer by 35%, and LatAm materials sector by 16%, the analyst tells investors in a research note. The firm further warns that the combination of weakening profitability on its core markets – U.S. and Brazil – coupled with rising capex will limit the company’s ability to return cash to shareholders.
Published first on TheFly
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