On february 5 at midday buy rated ip traded at 6223

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On February 5 at midday, BUY-rated IP traded at $62.23, up $0.06. (David Coleman, 2/5/18) NUCOR CORP. (NYSE: NUE, $64.18) .................................................................................... BUY NUE: Reiterating BUY and $70 target * Nucor delivered solid 2017 results and issued a positive outlook for 2018. * Nucor shares have risen 15.2% over the past three months, compared to an increase of 9.8% for the S&P 500. * NUE appears favorably valued at 12.9-times our 2018 EPS estimate and at 12.2-times our 2019 forecast, compared to a five-year annual range of 15-37. * Our target price of $70, combined with the dividend, implies a potential return of 13% from current levels. ANALYSIS INVESTMENT THESIS We are maintaining our BUY rating on Nucor Corp. (NYSE: NUE) with a target price of $70. Nucor delivered solid 2017 results and issued a positive outlook for 2018. The company has grown through both internal expansion and acquisitions. Looking ahead, we expect NUE shares to benefit from the Trump administration’s efforts to limit the dumping of imported steel, as well as from gradually improving steel market fundamentals. Our long-term rating also remains BUY. RECENT DEVELOPMENTS Nucor shares have risen 15.2% over the past three months, compared to an increase of 9.8% for the S&P 500. The shares have gained 14.7% over the past year, compared to an increase of 24.1% for the index. On January 30, Nucor reported 4Q17 adjusted net earnings of $208.7 million or $0.65 per diluted share, compared to $153.2 million or $0.50 per share in 4Q16. Fourth-quarter consolidated net revenue rose 29% year-over-year to $5.09 billion. The average sales price per ton increased 14% year-over-year, and total steel mill shipments increased 18%. The average scrap and scrap-substitute cost in the fourth quarter was $317 per ton, up 34% from 4Q16. Capacity utilization at the company’s steel mills was 81%, compared to 72% a year earlier. Total fourth-quarter energy costs were down about $1 per ton from the prior year. For all of 2017, Nucor’s consolidated net sales increased 25% to $20.25 billion, total tons shipped to outside customers rose 9%, and the average sales price per ton rose 15%. Net earnings totaled $1.15 billion or $3.58 per diluted share, up from $806.4 million or $2.48 per share in 2016. Nucor has a growth-by-acquisition strategy. On September 1, 2017, it completed the acquisition of St. Louis Cold Drawn, a manufacturer of cold-drawn rounds, hexagons, squares and special sections that serves the U.S. and Mexican automotive and industrial markets. In January 2017, Nucor purchased Southland Tube, a manufacturer of hollow structural section steel tubing, for $130 million. Nucor also acquired Republic Conduit, a North American manufacturer of steel electrical conduit, for $335 million. The company has also grown organically, investing $2.1 billion in capital projects since 3Q16. In September 2016, it announced plans for a new specialty cold mill complex in Arkansas. The plant will expand the company’s ability to produce advanced high-strength, motor-lamination and high-strength, low-alloy steel products. The $230 million facility is expected to begin operations in the second half of 2018. In May 2017, Nucor announced that it would invest $176 million to build a hot band galvanizing and pickling line at its sheet mill in Ghent, Kentucky. The new line will have an annual capacity of 500,000 tons, and
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