Barclays Downgrades BRF S.A. (BRFS) to Equal Weight from Overweight

BRF S.A. (NYSE:BRFS) is one of the best affordable stocks under $5 to invest in. On May 19, Barclays downgraded BRF S.A. (NYSE:BRFS) to Equal Weight from Overweight, bringing the price target down to $3.50 from $5.

The firm told investors in a research note that Marfrig announced a deal for the purchase of the remaining 47% of outstanding BRFS shares, fully consolidating the company into its operations.

The firm thus cited merger economics as the primary reason behind the downgrade. It stated that the opt-out price of R$19.89 implies a $3.50 price per ADR at current currency rates, which provides minimal potential upside given current trading prices.

BRF S.A. (NYSE:BRFS) produces and distributes fresh and frozen protein foods. The company’s offerings include frozen processed meats, specialty meats, prepared entrees, sliced products, and even products like cream cheese, butter, margarine, sweet specialties, and more. Its operations are divided into the Brazil, International, and Other segments.

While we acknowledge the potential of BRFS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.