Wall Street Analysts Just Trimmed Price Targets for These 10 Stocks

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08. Nucor Corporation (NYSE:NUE)

Price Reaction after the Price Target Cut: +2.69(+1.74%) 

On June 17, BMO Capital revised its price target for Nucor Corporation (NYSE:NUE), a prominent player in the steel industry, lowering it from $185 to $175. This adjustment was made in response to concerns regarding the challenging steel market environment, encompassing volatile prices and uncertain demand dynamics that could potentially impact Nucor Corporation (NYSE:NUE) financial performance in the upcoming quarters. Despite reducing the price target, BMO Capital reaffirmed its “Market Perform” rating on Nucor Corporation (NYSE:NUE), indicating continued confidence in the company’s long-term growth prospects amidst current market challenges. In contrast, Citi Research upgraded Nucor to a Buy rating with a more optimistic target price of $240, citing potential opportunities for growth. Nucor Corporation (NYSE:NUE) itself anticipates lower earnings for the second quarter of 2024, projecting an EPS in the range of $2.20 to $2.30. This forecast is below the consensus estimate of $3.00, reflecting the anticipated impact of market conditions on the company’s profitability.

In recent strategic moves, Nucor Corporation (NYSE:NUE) completed the acquisition of Rytec Corporation, a commercial door manufacturer, for $565 million. Analysts at Jefferies view this acquisition as a strategic initiative that will not only expand Nucor Corporation (NYSE:NUE) downstream investments but also diversify its product offerings, potentially bolstering its market position in related sectors. Additionally, Nucor Corporation (NYSE:NUE) is in the midst of a significant leadership transition, with Douglas J. Jellison set to retire and Randy J. Spicer scheduled to assume the role in May 2024. This leadership change underscores Nucor Corporation (NYSE:NUE) commitment to continuity and effective management amid evolving market conditions and strategic transformations within the company.

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