Gerdau S A Adr (GGB)

Gerdau S.A. ADR Stock (GGB) dropped by 5.58% from $5.02 to $4.74 in the trading on Monday November 20, 2023. The reasons why GGB stock down today is due to the stock downgrade from the analyst. B of A Securities downgraded its rating of Gerdau (GGB) to Neutral with a price target of $5.10, changing its price target from $5.60 to $5.10. It is due to several headwinds that Gerdau is facing:

• Weak operating figures with a downward trend on both sequential and year-on-year basis.
• Diminished steel demand within Brazil and increased competition from Chinese steel, leading to a pricing battle in the domestic market.
• Increased capital expenditures for maintenance and expansion, contributing to concerns about short-term cash flow generation.