UBS Points to Pricing Strength Behind Nucor’s (NUE) Share Gains

On January 28, UBS expert Andrew Jones chopped Nucor Corporation (NYSE:NUE) to Neutral from Buy and raised the firm’s terms people to $183 from $168. The determination reflects what the expert described arsenic “full” valuation and pricing. UBS noted that Nucor shares person climbed 32% since mid-October, adjacent aft a softer 4th quarter, supported by beardown pricing momentum successful level and agelong products and a $130/st announced summation successful sheet prices.

Separately, Reuters reported that Nucor’s fourth-quarter nett and gross fell abbreviated of Wall Street expectations connected January 26, arsenic higher costs weighed connected margins crossed its steelmaking operations. While wide US import tariffs person helped assistance spot alloy prices, alloy producers continued to recognize little selling prices during the quarter. That is due to the fact that galore semipermanent contracts reset gradually and are inactive tied to older pricing, delaying the payment from higher tariff-driven prices.

For the quarter, Nucor posted net of $1.73 per share, beneath the $1.91 per stock analysts were expecting, according to LSEG data. Revenue roseate 9% to $7.69 cardinal for the 4th ended December 31, besides coming successful nether the $7.87 cardinal statement estimate.

Nucor Corporation (NYSE:NUE) is simply a starring alloy shaper with operations crossed the US, Canada, and Mexico. In summation to making alloy and alloy products, the institution produces and sources ferrous and non-ferrous materials chiefly to enactment its ain alloy manufacturing operations.

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Disclosure: None.