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Investing.com - JPMorgan has upgraded Usiminas (BVMF:USIM5) (OTC:USNZY) from Underweight to Neutral following a review of estimates and establishment of December 2026 price targets.
The firm’s previous downgrade in 2024 was based on higher-than-expected costs and increased steel imports from China, factors JPMorgan now believes are reflected in the current stock price.
Usiminas shares peaked at R$11 after the refurbishment of BF#3 but have since declined approximately 60% to around R$4, while the Bovespa index gained 10% during the same period.
JPMorgan notes the steel producer stands to benefit from lower costs in coming quarters as raw material prices continue to fall, with potential upside if anti-dumping measures are approved in Brazil or if China’s anti-involution policies have greater impact.
The company is currently trading at 3.7x EV/EBITDA based on 2026 estimates, according to JPMorgan’s analysis.
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