Gerdau SA (GGBR4), Latin America’s largest steelmaker, gained the most among global peers after Citigroup Inc. recommended investors buy the stock on expectation profits will climb.
Shares of Porto Alegre, Brazil-based Gerdau rose 3.3 percent to 15.18 reais at 12:38 p.m. in Sao Paulo, heading to its highest close since April 1. It was the steepest increase among 16 major steel producers tracked by Bloomberg.
Gerdau’s performance is set to improve in the current quarter as steel prices in Brazil and U.S. sales volumes increase, Citigroup analysts led by New York-based Alexander Hacking said in a note to clients today after upgrading the stock to buy from neutral. Profits will probably climb further next year as flat-steel and iron-ore projects come online, they said.
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