Gerdau’s U.S.-listed shares are higher in Monday trading as investors react to a fresh wave of bullish analyst commentary that reframed the near-term risk/reward. Itaú BBA recently upgraded the steelmaker to an Outperform/Buy-style stance and published a $4.60 price target, arguing valuation had become more attractive after the stock’s decline from late-February levels. (investing.com)

The call lands as investors look for clearer 2026 catalysts in cyclical materials, and it effectively signals that downside may be more limited at current levels while any improvement in demand, pricing, or policy support could have an outsized impact on the shares. The upgrade was paired with a first-quarter 2026 preview, which has helped pull attention back to near-term fundamentals rather than the prior drawdown narrative. (investing.com)

Separately, Gerdau has been emphasizing capital returns. The company disclosed a new 2026 buyback program that authorizes repurchases of up to 55.0 million preferred shares and 1.44 million common shares over an 18-month window starting February 24, 2026, a feature that can bolster sentiment when the stock is under pressure. (stocktitan.net)

Traders will be watching for follow-through in additional target changes, how the market frames Gerdau’s near-term margin and demand outlook into the next results, and any updates that clarify the pace of repurchases under the new authorization. If more banks echo the valuation-driven upgrade, momentum could persist; if macro or steel-pricing signals weaken, the rally may fade back into the stock’s recent trading range. (investing.com)