Wells Fargo initiates Nucor coverage at Equal-Weight, sets $145 price target

Wells Fargo initiates Nucor coverage at Equal-Weight, sets $145 price target

Wells Fargo has initiated coverage on Nucor Corporation (NYSE:NUE) with an Equal-Weight rating and a price target of $145. The decision comes amidst a mixed market outlook for the steel producer, with recent analyst ratings and earnings reports providing contrasting signals.

UBS recently raised its price target on Nucor to $169 from $147, maintaining a Buy rating, citing increased confidence in the durability of 50% Section 232 tariffs [1]. This move was supported by the expectation that Brazil pig iron will be exempt from additional tariffs, resulting in a smaller headwind of approximately $60 million. Additionally, the investment bank noted that price increases are providing short-term momentum in long products such as rebar and merchant bar quality steel.

Despite the positive outlook, Nucor Corporation reported its Q2 2025 earnings, revealing a strong performance with earnings per share (EPS) of $2.60, which exceeded analysts’ forecast of $2.52. However, the company’s revenue did not meet expectations, totaling $8.46 billion against the anticipated $8.54 billion. This revenue shortfall has raised concerns among investors.

In another development, Jefferies upgraded Nucor’s stock rating from Hold to Buy, citing an improving outlook for steel demand and potential upside in steel prices in the United States. The investment firm also raised its price target for Nucor to $170.00 from $135.00 [1].

Wells Fargo’s decision to initiate coverage at Equal-Weight reflects a more cautious stance compared to the recent upgrades by UBS and Jefferies. The $145 price target is lower than both firms' targets, indicating a less optimistic view on Nucor’s near-term prospects.

Nucor Corporation’s mixed performance and the varying analyst ratings highlight the complexity of the steel market and the challenges faced by steel producers. Investors should closely monitor the company’s earnings and the evolving regulatory environment to make informed decisions.

References:
[1] https://au.investing.com/news/analyst-ratings/nucor-stock-price-target-raised-to-169-from-147-at-ubs-on-tariff-outlook-93CH-3966153