Nucor upgraded to Buy from Neutral at Citi

Citi upgraded Nucor to Buy from Neutral with a price target of $240, up from $180. The analyst says Nucor shares are undervalued relative to the company’s return on invested capital and free cash flow. “High-quality industrials are the right comps,” the analyst tells investors in a research note. Citi expects investors to be skeptical on this argument, but says “that’s the opportunity.” It believes Nucor has a 20-year track record of earnings growth and positive cash flow generation.