Market Overview

UPDATE: Bank of America Raises PO to $49 on Nucor Following Guidance

Related NUE
Morgan Stanley: Steel Production Near Its Peak
Jon Najarian Likes Nucor; Shares Up More Than 2%

Bank of America reiterated its Buy rating on Nucor (NYSE: NUE) and increased its price objective from $46 to $49 a share.

Bank of America noted, "NUE guided to Q412 EPS of $0.25-0.30 vs. BofAML at $0.34 and consensus at $0.33. Given its penchant for conservative guidance, we think guidance is in line. Q4 guidance included a $0.06/shr LIFO credit, down vs a $0.16 credit in Q3. … Of the steels, we are most positive on Nucor given its balance sheet and growth initiatives, particularly its direct reduced iron (DRI) facilities in Louisiana, scheduled for start-up mid-2013. Once fully ramped up we estimate a minimum $0.60- 0.75/shr benefit, taking advantage of low natural gas prices relative to coke to produce an iron and scrap input alternative."

Nucor closed at $43.50 on Monday.

Posted-In: Bank of AmericaAnalyst Color Price Target Intraday Update Analyst Ratings

 

Related Articles (NUE)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters