Wells Fargo initiates Nucor stock coverage with Equal Weight rating

Published 14/08/2025, 11:32
Wells Fargo initiates Nucor stock coverage with Equal Weight rating

Investing.com - Wells Fargo initiated coverage on Nucor (NYSE:NUE) with an Equal Weight rating and a price target of $145.00 on Thursday. According to InvestingPro data, this target aligns with the current analyst consensus, with price targets ranging from $130 to $176.

The steel producer’s shares have surged approximately 29% since early June, significantly outperforming the SLX Steel ETF, which gained about 10% during the same period. The company’s strong market position is underscored by its impressive dividend track record, having maintained payments for 53 consecutive years and increased them for 15 straight years.

Wells Fargo noted that Nucor shares appear appropriately valued following the recent rally, especially considering the company’s muted outlook for the third quarter.

The investment bank acknowledged management’s efforts to improve free cash flow but indicated that material returns on Nucor’s outsized investments will likely materialize in 2027 and beyond.

Wells Fargo suggested investors might begin anticipating improved free cash flow in 2027 by mid-2026, but emphasized that much of the targeted returns "remain a show-me story."

In other recent news, Nucor Corporation reported its Q2 2025 earnings, revealing an earnings per share (EPS) of $2.60, which exceeded analysts’ forecast of $2.52. However, the company’s revenue fell short of expectations, reaching $8.46 billion compared to the anticipated $8.54 billion. This revenue miss has raised concerns among investors regarding future guidance. In response to these developments, Jefferies upgraded Nucor’s stock rating from Hold to Buy, citing an improved outlook for steel demand and potential upside risk to steel prices in the United States. Additionally, Jefferies raised its price target for Nucor to $170.00 from $135.00. UBS also adjusted its price target for Nucor, increasing it to $169 from $147, while maintaining a Buy rating. UBS’s decision was influenced by increased confidence in the durability of 50% Section 232 tariffs. These recent developments highlight the evolving landscape for Nucor amid changing market conditions and analyst outlooks.

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