Usiminas Fair Value Target Falls 7.5% to R$8.87 as Analysts Split on Steel Upside
Updated
Updated · Yahoo Finance · Aug 16
Usiminas Fair Value Target Falls 7.5% to R$8.87 as Analysts Split on Steel Upside
1 articles · Updated · Yahoo Finance · Aug 16
Summary
R$8.87 is the new fair value estimate for Usiminas, down from R$9.59, after updated assumptions cut the implied valuation despite a still-positive view on Brazil's steel backdrop.
4.30% revenue growth is now modeled versus 3.76% before, but net profit margin was lowered to 5.11% from 6.53%, while the discount rate rose to 24.20% from 23.28%.
R$10.50 from Goldman Sachs marks the top of the analyst range, reflecting confidence that local steel pricing and volumes can support stronger returns.
R$8 from Itau BBA sits at the low end after it downgraded the stock to Market Perform from Outperform, highlighting execution risk in turning market conditions into earnings.
The revised target now sits between an R$8 to R$10.50 analyst range, underscoring a divided market view on how much of Brazil's steel cycle Usiminas can convert into shareholder value.