Gerdau Is Preferred Name In Brazilian Steel, Morgan Stanley Reports

In a report released this morning, Morgan Stanley said that it is upgrading its Gerdau (GGBR4.SA) rating to Overweight.

“Gerdau is our preferred name to regain exposure in Brazilian steel,” Morgan Stanley writes. “Following recent underperformance (GGBR4 has lagged its peers by 2,260 bps and the Bovespa by 3,040 bps so far this year), we think the stock is poised to outperform as fundamentals in North America improve in 2H11.”

Gerdau closed Friday at $22.16.