Nucor stock price target raised to $169 from $147 at UBS on tariff outlook

Investing.com - UBS raised its price target on Nucor (NYSE:NUE) to $169 from $147 while maintaining a Buy rating, citing increased confidence in the durability of 50% Section 232 tariffs. The steel giant, currently trading at $136.75 with a market cap of $31.52B, maintains a "GOOD" financial health score according to InvestingPro analysis.

The firm noted that Brazil pig iron appears to be exempt from additional tariffs, resulting in a smaller headwind of approximately $60 million at the current 10% rate versus an initially expected impact of over $200 million at a 50% rate.

UBS highlighted that price increases are providing short-term momentum in long products such as rebar and merchant bar quality steel, while the Brandenburg facility has turned EBITDA positive on record shipments in the second quarter of 2025.

The investment bank sees near-term projects including Kingsman/North Carolina bar mills, Alabama Towers, and Indiana Coating as supporting growth, and noted that West Virginia construction is 60% complete for startup by year-end 2026.

UBS raised its 2025/2026 EBITDA estimates by 10% and 2% respectively, calculating that Nucor offers a 7% to 9% free cash flow yield for 2025/2026 when excluding project capital expenditures of approximately $2 billion.

In other recent news, Nucor Corporation reported its Q2 2025 earnings, revealing a strong performance with earnings per share (EPS) of $2.60, which exceeded analysts’ forecast of $2.52. However, the company’s revenue did not meet expectations, totaling $8.46 billion against the anticipated $8.54 billion. Despite the earnings beat, the revenue shortfall has raised concerns among investors. In another development, Jefferies upgraded Nucor’s stock rating from Hold to Buy, citing an improving outlook for steel demand and potential upside in steel prices in the United States. The investment firm also raised its price target for Nucor to $170.00 from $135.00. These recent developments highlight the mixed signals investors are receiving about Nucor’s financial performance and market position.

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