Nucor Was Just Upgraded to Buy by UBS With $190 Price Target

UBS expert Andrew Jones upgraded Nucor Corp (NYSE:NUE) to Buy from Neutral connected Thursday, raising his terms people to $190 from $184, arguing that a caller pullback has created a compelling introduction point. The steadfast believes U.S. alloy producers are "largely insulated" from the Iran struggle and likes Nucor's setup fixed small nonstop deed from vigor and task maturation successful a federally supported higher price/volume environment.

The stock, presently trading astatine $166.45, has mislaid 5.22% implicit the past period and is down 1.74% year-to-date, though it remains up astir 31% implicit the past year.

Nucor shares person pulled backmost 7.65% implicit the past month, sitting astatine $165.17 arsenic of Wednesday's adjacent — 17.35% beneath their 52-week highest of $196.90. The descent traces backmost to a disappointing Q4 2025 report, wherever adjusted EPS of $1.73 missed the $2.14 statement by astir 19%, weighed down by an 8% sequential driblet successful alloy mill shipments, utilization slipping to 82% from 85% successful Q3, and scheduled outages astatine DRI facilities.

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UBS sees that weakness arsenic cyclical alternatively than structural. The guardant representation is meaningfully brighter: absorption guided Q1 2026 EPS to $2.70–$2.80, with betterment expected crossed each 3 segments. CEO Leon Topalian noted connected the net telephone that "sheet prices began to emergence successful November and December, with astir of that payment expected to beryllium realized successful the archetypal quarter."

Several structural tailwinds enactment the upgrade thesis. Steel import marketplace stock has fallen sharply, from astir 25% a twelvemonth agone to an estimated 14% successful November 2025, arsenic Section 232 tariffs instrumentality hold. Backlogs entering 2026 are astir 40% higher year-over-year successful the alloy mills segment, with sheet backlogs up 40% and rebar astatine grounds levels. Management projects full-year 2026 alloy mill shipments to emergence astir 5% versus 2025, driven by information centers, vigor infrastructure, and precocious manufacturing.