Citi Reiterates Buy Rating on Nucor (NUE)

Citi analyst Alexander Hacking reiterated a Buy rating and $240.00 price target on Nucor (NYSE: NUE).

The analyst commented, "Nucor reported 1Q24 EPS of $3.46/sh, ~4% below late-Q guidance of $3.55-$3.65/sh. This is extremely unusual for NUE – disconcerting for such a historically conservative company & hopefully a one-off – but mostly due to estimates of intercompany eliminations vs. operating results. EBITDA was $1.5bn, 3% below Citi with Mills ahead but Steel Products below. (Note: this was the weakest quarter of Joist & Deck shipments since 2015 & STLD stock may come under pressure as a result). FCF was negative with a big working capital draw. That said, B/S still has more cash than debt & buybacks are set to continue while strategic M&A is still under continued evaluation. Guidance is for lower results in 2Q24, as expected given lower sheet & plate prices. We expect the stock to underperform given the headline miss & outlook. Call is scheduled for 10 EST tomorrow (4/23)."

For an analyst ratings summary and ratings history on Nucor click here. For more ratings news on Nucor click here.

Shares of Nucor closed at $191.63 yesterday.

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