Analyst Lawson Winder of Bank of America Securities reiterated a Buy rating on Nucor (NUE – Research Report), boosting the price target to $235.00.
Lawson Winder has given his Buy rating due to a combination of factors including Nucor’s positioning to benefit from an anticipated increase in infrastructure demand, which should support the company’s long steel and plate mills. Despite a slight earnings miss in Q1’24, attributed mainly to higher corporate eliminations, Winder believes that Nucor’s robust free cash flow and capital returns will continue to be strong. The company’s strategy and market position suggest that it is well-equipped to navigate potential downside risks in hot-rolled coil pricing.
Additionally, Winder’s outlook is buoyed by Nucor’s guidance for the Raw Materials segment, which is expected to see improved performance due to better operations in direct reduced iron and scrap. The Q1 results showed a stronger Raw Materials segment than expected, helping to offset some of the earnings impact from other segments. With a disciplined capital return strategy that saw the company return 134% of net income to shareholders through buybacks and dividends in Q1, and a healthy order backlog, Winder maintains confidence in the company’s prospects, justifying the Buy rating with a price objective of $235.00.
According to TipRanks, Winder is a 2-star analyst with an average return of 0.0% and a 53.17% success rate. Winder covers the Basic Materials sector, focusing on stocks such as Alcoa, Commercial Metals Company, and Cleveland-Cliffs.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Nucor (NUE) Company Description:
Nucor Corp. engages in the manufacturing of steel and steel products. It operates through the following segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment comprises carbon and alloy steel in sheet, bars, structural and plate; steel trading businesses; rebar distribution businesses; and Nucor’s equity method investments. The Steel Products segment includes steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, metal building systems, steel grating, tubular products businesses, piling products business, and wire and wire mesh. The Raw Materials segment consists direct reduced iron, and ferrous and nonferrous metals. The company was founded by Ransom E. Olds in 1905 and is headquartered in Charlotte, NC.
Read More on NUE:
