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Nucor’s Strategic Growth and Attractive Valuation Support Buy Rating Amid Near-Term Uncertainties

Nucor’s Strategic Growth and Attractive Valuation Support Buy Rating Amid Near-Term Uncertainties

BMO Capital analyst Katja Jancic maintained a Buy rating on Nucor yesterday and set a price target of $155.00.

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Katja Jancic’s rating is based on Nucor’s strategic execution of its multi-year growth initiatives, which are anticipated to bolster profitability and free cash flow over time. Despite some near-term uncertainties, such as potential tariff impacts from Brazil and margin compression in the steel mills segment, Nucor’s project pipeline is progressing well, with several major projects expected to be completed in the latter half of 2025.
Nucor’s valuation appears attractive, trading at approximately 6.5x and 5.9x the estimated EV/EBITDA for 2026 and 2027, respectively. Additionally, the company’s commitment to returning at least 40% of its net income to shareholders, alongside a potential increase in share repurchases, further supports the Buy rating. The combination of these factors suggests a favorable risk/reward profile for investors.

In another report released yesterday, UBS also reiterated a Buy rating on the stock with a $147.00 price target.

NUE’s price has also changed moderately for the past six months – from $126.870 to $140.640, which is a 10.85% increase.

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