BUZZ-J.P.Morgan cuts PTs of US steelmakers on low Q4 expectations

J.P.Morgan cuts PTs on shares of Steel Dynamics STLD.O to $132 from $134, Nucor NUE.N to $152 from $168 and United States Steel X.N to $40 from $44

Brokerage expects downbeat market commentary from steel companies during Q4 earnings as weak midquarter guides and inflation uncertainty have also weighed on shares during the quarter

"With expectations already low, investors will be focused on signs of any green shoots for demand/pricing such as lead times/scrap costs as well as progress on growth initiatives" - JPM

Brokerage says steel buyers who have remained on sidelines during quarter owing to excess inventory and seasonally weak demand, now await clarity on trade policy under the incoming Trump administration

In 2024, NUE fell 32.9%, STLD fell 3.4% and X fell 30.1%

(Reporting by Aatreyee Dasgupta)

((Aatreyee.Dasgupta@thomsonreuters.com))