Gerdau SA, Latin America’s largest steelmaker, gained the most among global peers after Citigroup Inc. recommended buying the stock on expectation profits will climb.
Shares of Porto Alegre, Brazil-based Gerdau rose 4.1 percent to 15.30 reais at the close in Sao Paulo, the highest since April 1. It was the steepest increase among 16 global peers tracked by Bloomberg.
Gerdau will benefit this quarter from higher steel prices in Brazil and U.S. sales volume, Citigroup analysts led by New York-based Alexander Hacking said in a note to clients today after raising the recommendation from neutral. Profits will probably climb further next year as flat-steel and iron-ore projects come online, they said.