Gerdau’s recent Investor Day event has reignited analysts’ interest in the steel company. The event included presentations by CEO Gustavo Werneck and other executives, as well as a tour of their long steel plant in Araçariguama, São Paulo.
Despite ongoing challenges in the Brazilian steel market and the impact of new import tariffs, Gerdau is focused on expanding its portfolio with higher-value products and customized offerings. This shift sets them apart from Chinese competitors who focus on commoditized steel.
Efforts to reduce costs and optimize logistics are already showing positive results and are projected to save the company R$1 billion annually by 2025.
Gerdau’s strategic adjustments, including a downward revision of CAPEX guidance and an increase in projected strategic EBITDA, reflect their emphasis on high-value products and operational efficiency.
Analysts predict a potential upside in Gerdau’s stock, with a 50% upside potential based on the company’s valuation. Gerdau’s solid shareholder returns and strategic decisions continue to make it an attractive option for investors.
For more investment opportunities, investors can access Empiricus’ free list of recommended stocks.