From Yahoo Finance: 2025-06-16 15:06:00

Gerdau S.A. (NYSE:GGB) is one of the 10 Most Undervalued Stocks to Buy for Under $5. UBS upgraded the stock’s rating to Buy and raised the price target to $3.80 from $2.90, representing a 26% upside potential from current levels. This comes after the Trump administration increased import tariffs on steel to 50%.

UBS analysts see the steel tariffs as a significant development for Gerdau S.A. (NYSE:GGB) due to its substantial U.S. operations. They anticipate improved margins and increased EBITDA estimates for 2026 by 32% following the higher import tariffs. The company is expected to benefit from the tight demand and supply dynamics in the U.S. steel market.

Analysts predict a reduction in capex from 2026 onwards for Gerdau S.A. (NYSE:GGB), leading to a significant increase in free cash flow. With a forward price-earnings ratio of 8.15, the stock is considered undervalued. While GGB shows promise, other AI stocks may offer greater upside potential with lower downside risk.

For investors seeking an undervalued AI stock benefiting from Trump-era tariffs and onshoring, explore the best short-term AI stock in a free report. GGB is positioned well for potential growth, but there are other opportunities worth considering.



Read more at Yahoo Finance: UBS Upgrades Gerdau S.A. (GGB), Lifts Price Target Amid US Steel Tariffs