In a report released yesterday, Katja Jancic from BMO Capital maintained a Hold rating on Nucor (NUE – Research Report), with a price target of $140.00.
Katja Jancic’s rating is based on a combination of factors that reflect both positive developments and ongoing challenges for Nucor. The company is seeing an improvement in earnings, with the first quarter of 2025 likely being the lowest point for the year. This is supported by healthy order activity and increased backlogs, indicating a positive demand outlook. However, trade and macroeconomic uncertainties still pose risks that cannot be overlooked.
Additionally, while Nucor is making significant progress on its multi-year growth projects, these initiatives come with elevated capital expenditures that could weigh on near-term financial performance. The company’s commitment to returning cash to shareholders is a positive, but the high capex and potential tariff impacts add a layer of risk. Overall, these mixed factors contribute to the Hold rating, as the stock’s valuation and external uncertainties balance out the internal growth prospects.
Jancic covers the Basic Materials sector, focusing on stocks such as Nucor, Commercial Metals Company, and Freeport-McMoRan. According to TipRanks, Jancic has an average return of 7.4% and a 55.88% success rate on recommended stocks.