Analyst Ratings Suggest Potential Upside for Gerdau SA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 13 2025
0mins
Source: NASDAQ.COM
Gerdau SA's stock has fallen 3.66% and is currently hitting a 20-day low.
Despite the decline, analysts indicate that GGB's low ranking in the Metals Channel Global Mining Titans Index may suggest upside potential for contrarian investors, even as it trades down about 1% compared to peers like Southern Copper Corp and Howmet Aerospace Inc. This relative underperformance highlights the mixed interpretations among investors regarding GGB's future performance.
The current market context shows GGB's struggles against a backdrop of rising indices like the Nasdaq-100 and S&P 500, suggesting that while GGB faces challenges, there may be opportunities for those willing to invest against the trend.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GGB?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GGB
About GGB
Gerdau SA is a Brazil-based manufacturer of steel products. The Company is engaged in the production and commercialization of steel products in general, through its mills located in Argentina, Brazil, Canada, Colombia, the United States, Mexico, Peru, the Dominican Republic, Uruguay and Venezuela. The Firm’s product portfolio includes crude steel; finished products for the construction industry, such as rebar, wire-rods, structural shapes, hot-rolled coils and heavy plates; finished industrial products, such as commercial rolled-steel bars, light profiles and wires; agricultural products, such as stakes, smooth wire and barbed-wire; and special steel items. The Company’s activities include also operations of iron ore mines located in the state of Minas Gerais.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Impact of Analyst Ratings on GGB
- Analyst Rating Summary: GGB's ranking in the Metals Channel Global Mining Titans Index, based on averaged opinions from major brokerages, reveals diverse market interpretations, where a low rank may suggest poor stock performance but could also indicate upside potential for bullish investors.
- Market Performance Comparison: Currently, GGB is trading down about 1%, which positions it weaker compared to Southern Copper Corp (down approximately 0.9%) and Howmet Aerospace Inc (down about 0.7%), highlighting its relative underperformance in the sector.
- Diverse Investor Interpretations: The low analyst ranking does not necessarily imply that GGB's stock will continue to decline; rather, it may present significant upside potential for investors willing to adopt a contrarian investment approach.
- Price History Trends: A three-month price history chart comparing GGB's performance against SCCO and HWM further emphasizes market attention on GGB and potential investment opportunities.
See More
Gerdau SA Reports Strong Q1 Results with 50% Net Income Increase
- Significant Performance Growth: Gerdau SA reported strong results in North America, achieving the best adjusted EBITDA since 2022, with consolidated net income reaching BRL 1 billion, a 50% increase from the previous quarter, demonstrating the company's robust competitive position in the market.
- Launch of Low-Carbon Product: The introduction of Gerdau New Eco, a low-carbon steel solution, expands the product portfolio while reducing carbon footprint, aligning with global sustainability demands and likely attracting environmentally conscious customers.
- Investment Project Plans: Gerdau plans to complete significant projects by the end of 2026, potentially adding nearly BRL 1.5 billion to annual EBITDA, indicating a proactive approach to future growth opportunities.
- Challenges in Brazilian Market: Despite strong performance in North America, the Brazilian market faces pressure from excessive steel imports, impacting profitability, and a notable decline in apparent consumption of long steel products is affecting overall performance.
See More
Gerdau Declares Quarterly Dividend of $0.0361
- Quarterly Dividend Announcement: Gerdau has declared a quarterly dividend of $0.0361 per share, indicating the company's ongoing cash flow and profitability, which is likely to attract more investor interest in its stock performance.
- Payment Date Schedule: The dividend will be payable on June 16, with a record date of May 15 and an ex-dividend date also on May 15, ensuring shareholders receive their returns promptly and boosting shareholder confidence.
- Dividend Growth Potential: Gerdau's strong dividend growth reflects its robust operations and profitability in the steel industry, potentially appealing to investors seeking stable income.
- Rating Change Impact: The upgrade of Gerdau's rating in contrast to Ternium's downgrade highlights increased market confidence in Gerdau, which may positively influence its stock price.
See More
Bank of America Upgrades Ternium to Buy with $47.50 Target
- Rating Upgrade: Bank of America upgraded Ternium from Neutral to Buy with a price target increase from $46 to $47.50, reflecting optimism about stronger-than-expected North American flat steel pricing, which is expected to drive the company's stock price higher.
- Capital Spending Inflection: Analysts highlighted that 2027 marks a capital spending inflection point for Ternium, as the completion of the Pesquería expansion is projected to yield approximately 10% free cash flow, enhancing the company's financial health and investment appeal.
- Trade Policy Beneficiary: Ternium is seen as a primary beneficiary of a potential USMCA renegotiation, which could lead to exemptions from U.S. tariffs, thereby further enhancing its market competitiveness and profitability.
- Industry Comparison: Bank of America also reiterated its Buy rating on Gerdau, noting its strong performance in North America and a backlog of approximately 90 days, indicating the company's relative strength in the industry.
See More
Gerdau Upgraded, Ternium Downgraded Amid Global Steel Market Turmoil
- Gerdau Upgrade: Scotiabank upgraded Gerdau (GGB) from Sector Perform to Sector Outperform, as analyst Alfonso Salazar sees an attractive risk/reward profile, expecting strong North American results bolstered by effective steel tariffs protecting domestic producers.
- Free Cash Flow Outlook: Salazar estimates Gerdau's (GGB) free cash flow yield will average 12.1% from 2026 to 2028, with improved generation as investments in Brazil and North America decline, leading to attractive shareholder distributions through dividends and buybacks.
- Ternium Downgrade: In contrast, Scotiabank downgraded Ternium (TX) from Sector Outperform to Sector Perform, citing a lack of conditions for a swift renegotiation of the USMCA agreement and concerns that U.S. steel tariffs from the Trump administration may persist.
- Market Uncertainty: The ongoing uncertainty surrounding USMCA may lead to questions about the economics of Ternium's (TX) investments in Mexico, as the benefits from increased integration could take longer than anticipated to materialize, dampening expectations for new investments.
See More
T. Rowe Elevates Stake in Brazil's Gerdau to 5.01% of Preferred Shares, According to Filing
- Stake Increase: T. Rowe Price has increased its stake in Gerdaus, now holding 5.01% of the preferred shares.
- Filing Announcement: The increase in stake was disclosed through a regulatory filing.
See More
Impact of Analyst Ratings on GGB
- Analyst Rating Summary: GGB's ranking in the Metals Channel Global Mining Titans Index, based on averaged opinions from major brokerages, reveals diverse market interpretations, where a low rank may suggest poor stock performance but could also indicate upside potential for bullish investors.
- Market Performance Comparison: Currently, GGB is trading down about 1%, which positions it weaker compared to Southern Copper Corp (down approximately 0.9%) and Howmet Aerospace Inc (down about 0.7%), highlighting its relative underperformance in the sector.
- Diverse Investor Interpretations: The low analyst ranking does not necessarily imply that GGB's stock will continue to decline; rather, it may present significant upside potential for investors willing to adopt a contrarian investment approach.
- Price History Trends: A three-month price history chart comparing GGB's performance against SCCO and HWM further emphasizes market attention on GGB and potential investment opportunities.
See More
Gerdau SA Reports Strong Q1 Results with 50% Net Income Increase
- Significant Performance Growth: Gerdau SA reported strong results in North America, achieving the best adjusted EBITDA since 2022, with consolidated net income reaching BRL 1 billion, a 50% increase from the previous quarter, demonstrating the company's robust competitive position in the market.
- Launch of Low-Carbon Product: The introduction of Gerdau New Eco, a low-carbon steel solution, expands the product portfolio while reducing carbon footprint, aligning with global sustainability demands and likely attracting environmentally conscious customers.
- Investment Project Plans: Gerdau plans to complete significant projects by the end of 2026, potentially adding nearly BRL 1.5 billion to annual EBITDA, indicating a proactive approach to future growth opportunities.
- Challenges in Brazilian Market: Despite strong performance in North America, the Brazilian market faces pressure from excessive steel imports, impacting profitability, and a notable decline in apparent consumption of long steel products is affecting overall performance.
See More
Gerdau Declares Quarterly Dividend of $0.0361
- Quarterly Dividend Announcement: Gerdau has declared a quarterly dividend of $0.0361 per share, indicating the company's ongoing cash flow and profitability, which is likely to attract more investor interest in its stock performance.
- Payment Date Schedule: The dividend will be payable on June 16, with a record date of May 15 and an ex-dividend date also on May 15, ensuring shareholders receive their returns promptly and boosting shareholder confidence.
- Dividend Growth Potential: Gerdau's strong dividend growth reflects its robust operations and profitability in the steel industry, potentially appealing to investors seeking stable income.
- Rating Change Impact: The upgrade of Gerdau's rating in contrast to Ternium's downgrade highlights increased market confidence in Gerdau, which may positively influence its stock price.
See More
Bank of America Upgrades Ternium to Buy with $47.50 Target
- Rating Upgrade: Bank of America upgraded Ternium from Neutral to Buy with a price target increase from $46 to $47.50, reflecting optimism about stronger-than-expected North American flat steel pricing, which is expected to drive the company's stock price higher.
- Capital Spending Inflection: Analysts highlighted that 2027 marks a capital spending inflection point for Ternium, as the completion of the Pesquería expansion is projected to yield approximately 10% free cash flow, enhancing the company's financial health and investment appeal.
- Trade Policy Beneficiary: Ternium is seen as a primary beneficiary of a potential USMCA renegotiation, which could lead to exemptions from U.S. tariffs, thereby further enhancing its market competitiveness and profitability.
- Industry Comparison: Bank of America also reiterated its Buy rating on Gerdau, noting its strong performance in North America and a backlog of approximately 90 days, indicating the company's relative strength in the industry.
See More
Gerdau Upgraded, Ternium Downgraded Amid Global Steel Market Turmoil
- Gerdau Upgrade: Scotiabank upgraded Gerdau (GGB) from Sector Perform to Sector Outperform, as analyst Alfonso Salazar sees an attractive risk/reward profile, expecting strong North American results bolstered by effective steel tariffs protecting domestic producers.
- Free Cash Flow Outlook: Salazar estimates Gerdau's (GGB) free cash flow yield will average 12.1% from 2026 to 2028, with improved generation as investments in Brazil and North America decline, leading to attractive shareholder distributions through dividends and buybacks.
- Ternium Downgrade: In contrast, Scotiabank downgraded Ternium (TX) from Sector Outperform to Sector Perform, citing a lack of conditions for a swift renegotiation of the USMCA agreement and concerns that U.S. steel tariffs from the Trump administration may persist.
- Market Uncertainty: The ongoing uncertainty surrounding USMCA may lead to questions about the economics of Ternium's (TX) investments in Mexico, as the benefits from increased integration could take longer than anticipated to materialize, dampening expectations for new investments.
See More
T. Rowe Elevates Stake in Brazil's Gerdau to 5.01% of Preferred Shares, According to Filing
- Stake Increase: T. Rowe Price has increased its stake in Gerdaus, now holding 5.01% of the preferred shares.
- Filing Announcement: The increase in stake was disclosed through a regulatory filing.
See More
