In a report released today, Katja Jancic from BMO Capital upgraded Nucor (NUE – Research Report) to a Buy, with a price target of $145.00.
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Katja Jancic has given her Buy rating due to a combination of factors that make Nucor an attractive investment. The company is in the midst of a multi-year organic growth plan that is expected to enhance its profitability and free cash flow over time. This growth strategy includes expanding its production capabilities and product offerings, which positions Nucor well in an environment with increasing protectionist policies.
Additionally, Nucor’s diversified product mix and relatively lower utilization rates provide significant potential for volume growth, especially in light of the recent increase in steel tariffs. The company’s shares are currently trading at a compelling valuation, with a discount compared to its peers, making the risk/reward profile favorable. These elements combined suggest that Nucor is well-positioned for future growth and profitability, justifying the Buy rating.
In another report released on May 29, UBS also maintained a Buy rating on the stock with a $147.00 price target.
Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NUE in relation to earlier this year.