Nucor upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Nucor to Overweight from Equal Weight with a price target of $176, down from $187. The firm thinks steel prices have bottomed given the tighter import spread, but does not expect prices to rally much. Given the “capped upside,” the analyst prefers “lower beta” and upgraded Nucor saying its de-rating versus peers looks overdone. Morgan Stanley continues to see limited upside to flat steel prices given its forecast of muted demand in the second half of 2024.