Jefferies Starts Nucor as a Buy; Sees 25% Upside (NUE)

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Steel maker Nucor Corporation ( NUE ) on Friday saw its coverage initiated with a "Buy" rating by analysts at Jefferies & Co.

The firm also set a $52 price target on NUE, which suggests a 25% upside to the stock's Thursday closing price of $41.51.

A Jefferies analyst commented, "With the shares having pulled back -16% from YTD highs (currently 5.6x 2012E EBITDA), current prices represent an attractive entry point ahead of improving industry fundamentals in 2012 and beyond. Our $52 price target values the shares at 6.9x long term historical average multiple."

Nucor shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of Nucor ( NUE ) have a 3.49% dividend yield, based on last night's closing stock price of $41.51. The stock has technical support in the $38 price area. If the shares can firm up, we see overhead resistance around the $44-$45 price levels.

Nucor Corporation ( NUE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: NUE

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