Nucor (NUE – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Lawson Winder from Bank of America Securities maintained a Buy rating on the stock and has a $160.00 price target.
Lawson Winder has given his Buy rating due to a combination of factors influencing Nucor’s stock. Despite the company’s guidance for Q1’25 adjusted EPS being below consensus estimates, Winder maintains a positive outlook due to the ongoing rally in flat-rolled steel prices and robust capital returns to shareholders. Nucor’s strategic exposure to long products and diverse downstream offerings positions it favorably compared to peers, potentially allowing it to weather market corrections more effectively.
Moreover, Nucor’s commitment to returning capital to shareholders remains strong, as evidenced by significant buybacks and dividends. The company has completed a substantial portion of its investment plan, yet it still stands to benefit from the earnings potential of recently completed projects. These factors, combined with the potential for elevated flat-rolled steel prices in the near term, support Winder’s decision to maintain a Buy rating with a price objective of $160.00 USD.
According to TipRanks, Winder is a 4-star analyst with an average return of 4.2% and a 51.50% success rate. Winder covers the Basic Materials sector, focusing on stocks such as Kinross Gold, Nucor, and Eldorado Gold.
In another report released on March 11, J.P. Morgan also maintained a Buy rating on the stock with a $156.00 price target.