Scotiabank Lowers PT on Gerdau S.A. (GGB) to R$20 From R$31, Keeps a Sector Perform Rating

Gerdau S.A. (NYSE:GGB) is one of the best affordable stocks under $5 to invest in. On July 17, Scotiabank lowered the firm’s price target on Gerdau S.A. (NYSE:GGB) to R$20 from R$31, keeping a Sector Perform rating on the shares.

The firm told investors in a research note that the outlook for global steel demand has dwindled with rising trade tensions and uncertainty prompted by constantly changing tariff announcements.

While the overall outlook for the industry remains challenging, Scotiabank noted that it sees a more promising outlook in the US compared to the steel markets in Latin America.

Gerdau S.A. (NYSE:GGB) produces and commercializes steel products. The company’s operations are divided into the following segments: Brazil Operation, North America Operation, South Africa Operation, and Special Steels Operation.

While we acknowledge the potential of GGB 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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