Gerdau rides the US data center boom; UBS BB raises target price
Want to ride the data center boom in the United States? Buy Gerdau.
UBS BB has raised its target price for Gerdau shares to R$ 35 and reiterated its 'buy' recommendation, citing the potential for the company to benefit from the growth of data centers in the United States. The bank expects investments in data centers to accelerate until 2027, which should sustain demand for Gerdau's products and keep margins high.
UBS BB has also increased its projections for Gerdau's EBITDA to R$ 13.9 billion this year and R$ 15.2 billion in 2027. The bank believes the market may be underestimating Gerdau's cash generation potential in the US, where data center expansion is driving demand for steel.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
