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Preferred HOLD On 30 May 2008, Gerdau S.A. (Gerdau) announced a 1:2 stock split, which took effect on 20 June
2008. Therefore, we have adjusted our preferred stock and ADR prices, which were originally
Stock calculated for our FY 2007 update report, dated 28 March 2008. In view of high demand for the
company’s steel products, along with rising steel prices, we expect to raise our top and bottom-line
estimates, as well as our target price, when we revalue the company in our next full update report.
Ticker: GGBR4.SA Therefore, although our current preferred stock target price suggests a SELL, we maintain our HOLD
Target price: BRL23.05 rating.
Current price: BRL38.55
Price change since We will reassess our preferred stock rating for Gerdau in our next full update report.
44.4%
previous report:
ADR BUY We continue to anticipate a significant positive currency impact on the ADR over our investment
horizon. Therefore, although our current ADR target price suggests a SELL, we maintain our BUY
rating.
Ticker: GGB
Target price: US$17.73
Current price: US$24.22
Price change since We will reassess our ADR rating for Gerdau in our next full update report.
57.0%
previous report:
Meanwhile, in view of rising demand for the company’s steel products, supported by the rising prices,
we expect to raise our top- and bottom-line estimates when we revalue the company in our next full
update report. Therefore, although our current preferred stock target price suggests a SELL, we
maintain our HOLD rating.
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