Citigroup downgraded NUE to "neutral" from "buy"
North Carolina-based steel stock Nucor Corporation (NYSE:NUE) is down 2.1% to trade at $113.83 at last check, after a downgrade from Citigroup to "neutral" from "buy." The firm noted that returns from the infrastructure spending bill are already priced in, and adjusted its price target to $120 from $105.
Yesterday, news that the over $1 trillion infrastructure bill passed in congress sent NUE back within striking distance of that $120 level. Now, the stock is once again below the $115 level, which had been keeping a lid on gains before last session's pop. Meanwhile, the 150-day moving average, which has provided long-term support, caught the equity's late September pullback, and helped guide it higher through October. Year-to-date, the steel giant is up 113.8%.
Before today's bear note, four of the six analysts in coverage already carried a "hold" rating on NUE, with just two at a "strong buy." Plus, the 12-month consensus price target of $115.80 sits just above current levels.
It's also worth noting that the security's Schaeffer's Volatility Scorecard (SVS) sits at a 91 out of 100, meaning NUE has exceeded option traders' volatility expectations during the past year.