Gerdau initiated with a Neutral at UBS

UBS initiated coverage of Gerdau (GGB) with a Neutral rating and $3.30 price target The firm initiated coverage of the Brazilian metals and mining sector, saying the group has a strong correlation to China’s economic momentum. China’s secular decline of its property sector has translated into decelerating economic activity and also demand for metal, the analyst tells investors in a research note. UBS is cautious on the outlook for the space.