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Investing.com -- Wells Fargo began coverage of four major U.S. steelmakers amid opportunities from recent price hikes, import declines, and potential tariff effects, while cautioning that construction demand recovery may not come until 2027.
The brokerage rated Commercial Metals Co and AZZ Inc Overweight, Nucor Corp and Cleveland-Cliffs Inc Equal weight.
Price targets are $61 for Commercial Metals, $128 for AZZ, $145 for Nucor , and $10 for Cleveland-Cliffs.
Wells Fargo sees CMC benefiting from recent U.S. rebar price increases, supported by steady demand, fewer imports, and supply discipline, with EBITDA expected to improve sharply in 2026.
AZZ was cited for its stable tolling model, resilient margins, and potential to gain share from imported painted products, as well as reshoring-driven demand.
For Nucor, Wells Fargo pointed to balanced near-term steel price risks but said key catalysts such as large project returns and free cash flow improvement are more a 2027 story.
Cleveland-Cliffs was viewed as having high leverage to sheet prices and some near-term price support, but with risks from elevated debt, competition, and possible tariff changes.
The analysts noted that President Trump’s late-May announcement of a 50% Section 232 tariff on imported steel should help limit imports, which have represented roughly 10–15% of U.S. consumption.
They expect CMC to take share as imports fall, AZZ to benefit from reshoring, and sheet-focused producers like CLF and NUE to see near-term pricing support.
Wells Fargo’s outlook assumes some erosion of recent price gains but said persistent strength, additional cost cuts, or accretive M&A could provide upside across the group.