Investing.com -- UBS downgraded Nucor Corp (NYSE:NUE), Steel Dynamics Inc (NASDAQ:STLD), and Commercial Metals Company (NYSE:CMC), citing less compelling risk-reward dynamics following a strong rally in their shares.
Nucor and Steel Dynamics were cut to "neutral" from "buy," while Commercial Metals was downgraded to "sell."
UBS pointed to weak third-quarter earnings, disappointing fourth-quarter guidance, and continued pricing and demand pressures as key factors.
The U.S. steel sector had rallied in anticipation of trade protection policies but faces challenges from declining shipments and softer steel pricing. UBS expects a recovery in demand and prices into 2025 but warns that risks remain, particularly for first-quarter estimates.
Commercial Metals’ downgrade reflects its retention of post-election gains despite a $330 million court ruling and a reduced outlook for rebar demand.
UBS has given price targets at $149 for Steel Dynamics, $156 for Nucor, and $56 for Commercial Metals.
“We still think 2025 will show an improving demand trend off a low base, but a higher yield curve post Trump's win is likely to be a headwind to new construction project approvals,” analyst wrote.
Related Articles
UBS downgrades steel stocks citing less compelling risk-reward post rally
Finland stocks lower at close of trade; OMX Helsinki 25 down 0.52%
Virgin Galactic eyes Italy for space tourism expansion
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。