KeyBanc analyst Philip Gibbs raised his price targets for Overweight-rated Nucor (NUE) and Reliance Steel (RS) to $62 from $60 and $125 from $120, respectively. In a research note to investors, Gibbs says that following recent due diligence, including his firm's Q4 "SoS" survey, estimates rise on primary carbon sheet spreads on better mill supply discipline against easing de-stocking pressures and subdued raw materials. The analyst says he continues to favor Nucor and Reliance Steel over a long-term horizon.

Reliance expects a better than normal seasonal recovery in demand in the second quarter of 2024 despite prevailing macroeconomic uncertainty and geopolitical matters. Accordingly, the company estimates its tons sold will be up 2.5% to 4.5% in the second quarter of 2024 compared to the first quarter of 2024, with approximately 2% of the sequential growth coming from recently completed acquisitions on April 1, 2024. In addition, Reliance expects its average selling price per ton sold for the second quarter of 2024 to be down 1% to 3% compared to the first quarter of 2024. The company also anticipates short term gross profit margin pressure in the second quarter of 2024 as it works through higher cost inventory on hand. Based on these expectations, the company anticipates non-GAAP earnings per diluted share in the range of $4.70 to $4.90 for the second quarter of 2024.

BMO Capital lowered the firm's price target on Nucor to $200 from $210 and keeps a Market Perform rating on the shares after its Q1 earnings miss. Following nine consecutive quarters of beating expectations, Nucor's results and outlook disappointed, while its Q2 results are also expected to moderate sequentially, the analyst tells investors in a research note. Nucor remains well-positioned to benefit from positive longer-term demand tailwinds, but its capex spending elevated, BMO adds.

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JPMorgan US Clean Tech/Metals & Mining Analyst Peterson and CFO Laxton hold a 1Q24 earnings follow-up conference call to be held on April 23 at 2 pm hosted by JPMorgan. Webcast Link