Gerdau’s “Neutral” Rating Reaffirmed at Zacks (GGB)
Gerdau (NYSE:GGB)‘s stock had its “neutral” rating restated by Zacks in a research report issued on Thursday. They currently have a $6.00 target price on the stock. Zacks‘s target price indicates a potential upside of 6.01% from the stock’s previous close.
Zacks’ analyst wrote, “Gerdau’s net income declined 1.9% year over year in second-quarter 2014, with earnings coming in at $0.10 per ADR. Revenues grew 5.7% due to healthy performance in North America, Special Steel and Iron Ore business operations. However, weak domestic demand for steel and lower exports affected the company’s Brazilian operations while business in Latin America suffered from slower economic growth. Steel shipments were down 2.4% while production grew a meagre 0.5%. Gross margin was down 150 basis points. However, planned investments to improve manufacturing techniques, production capacities and raw material resources will help Gerdau to capitalize on the growing steel demand worldwide. Considering the above factors, we maintain a Neutral recommendation on the company. “
Gerdau (NYSE:GGB) remained flat at $5.66 during during mid-day trading trading on Thursday. The stock had a trading volume of 2,686,505 shares. Gerdau has a 52 week low of $5.48 and a 52 week high of $8.41. The stock’s 50-day moving average is $5.97 and its 200-day moving average is $6.17. The company has a market cap of $9.647 billion and a price-to-earnings ratio of 12.28.
Gerdau (NYSE:GGB) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.09 earnings per share (EPS) for the quarter. Analysts expect that Gerdau will post $0.97 EPS for the current fiscal year.
The company also recently declared a dividend, which is scheduled for Thursday, August 21st. Shareholders of record on Monday, August 11th will be given a dividend of $0.027 per share. The ex-dividend date of this dividend is Tuesday, August 12th.
Separately, analysts at JPMorgan Chase & Co. downgraded shares of Gerdau from an “overweight” rating to a “neutral” rating in a research note on Thursday, July 10th. Three research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $6.00.
Gerdau SA (NYSE:GGB) is a producer of long rolled steel.
To view Zacks’ full report, visit Zacks’ official website.
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