In a report released yesterday, Alexander Hacking from Citi maintained a Buy rating on Nucor, with a price target of $150.00.
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Alexander Hacking has given his Buy rating due to a combination of factors influencing Nucor’s stock performance. Despite the company’s guidance for a lower third-quarter earnings per share, which is below both Citi’s and Factset’s estimates, Hacking sees potential in Nucor’s strategic positioning. The company’s Mills segment is experiencing challenges with reduced volumes and narrower metal spreads, contrasting with a competitor’s recent positive guidance. However, Nucor’s strategic actions, such as share repurchases, indicate a commitment to enhancing shareholder value.
Hacking acknowledges the potential for a negative market reaction to the guidance, particularly in light of a competitor’s contrasting performance. Nonetheless, the expected share price return of 5.0% suggests confidence in Nucor’s ability to navigate current market conditions and capitalize on future opportunities. This outlook supports the Buy rating, as Hacking anticipates that Nucor’s strategic initiatives and market positioning will yield favorable long-term results.
In another report released on September 15, Bank of America Securities also reiterated a Buy rating on the stock with a $165.00 price target.
NUE’s price has also changed moderately for the past six months – from $129.500 to $142.800, which is a 10.27% increase.