Gerdau: Up, And Back Down Again In 2026E (Rating Upgrade)

Wolf ReportInvesting Group LeaderFollow5ShareSavePlay(13min)CommentsSummaryGerdau is upgraded to 'buy' with a new price target of $3.6/share, reflecting improved external factors and conservative valuation.GGB's volatility stems from strong US operations offset by systemic Brazilian market challenges, notably Chinese steel imports and recent gross profit declines.Recent Brazilian anti-dumping duties, import quotas, and government housing initiatives are expected to bolster domestic steel demand and support GGB's 2026E outlook.GGB remains fundamentally sound with low leverage and positive FCF, but risks from regional exposure and inconsistent returns warrant cautious position sizing.Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More » Leila Melhado/iStock Editorial via Getty Images I downgraded Gerdau (GGB) to "HOLD" in my last article in December of 2025. While initially seeming like a poor rating, the subsequent decline despite an otherwise positive sector has, if not madeThis article was written byWolf Report34.97K FollowersFollowWolf Report is a senior analyst and private portfolio manager with over 10 years of generating value ideas in European and North American markets.He covers the markets of Scandinavia, Germany, France, UK, Italy, Spain, Portugal and Eastern Europe in search of reasonably valued stock ideas.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice. It may be structured as such, but it is not financial advice. Investors are required and expected to do their own due diligence and research prior to any investment. Short-term trading, options trading/investment and futures trading are potentially extremely risky investment styles. They generally are not appropriate for someone with limited capital, limited investment experience, or a lack of understanding for the necessary risk tolerance involved. I own the European/Scandinavian tickers (not the ADRs) of all European/Scandinavian companies listed in my articles. I own the Canadian tickers of all Canadian stocks I write about. Please note that investing in European/Non-US stocks comes with withholding tax risks specific to the company's domicile as well as your personal situation. Investors should always consult a tax professional as to the overall impact of dividend withholding taxes and ways to mitigate these.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.