Shares of Gerdau SA (GGB) tumbled 5.54% in pre-market trading on Wednesday, following a significant price target cut by UBS. The move reflects growing concerns about the steel manufacturer's near-term prospects.
UBS lowered its price target on Gerdau from $3.30 to $2.90, maintaining a Neutral rating on the stock. This adjustment represents a 12% reduction in the expected value of GGB shares, likely contributing to the sharp pre-market sell-off. The downgrade suggests that UBS analysts have become more cautious about Gerdau's growth potential or profitability in the current market environment.
While UBS maintained its Neutral stance, the lowered price target could prompt investors to reassess their positions in Gerdau SA. The steel industry has been facing challenges due to global economic uncertainties and fluctuating commodity prices. Investors will be closely watching for any further analyst revisions or company announcements that might provide more insight into Gerdau's financial health and future outlook.
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