Nucor, Steel Dynamics rise after UBS upgrade on aluminum and steel tariff protections

U.S. steel makers Steel Dynamics STLD.O and Nucor's NUE.N shares rise 3.2% to $126.65, and 4% to $126.90, respectively

Brokerage UBS upgrades both stocks to "buy" from "neutral", raises PT of NUE to $160 from $156, STLD's PT unchanged

Brokerage anticipates promising outlook for both companies, citing tariff protection on U.S. steel and aluminum as a potential catalyst for a surge in hot-rolled coil (HRC) prices

Brokerage says STLD's organic growth from Sinton and aluminum projects is expected to generate substantial cash returns, making the recent market selloff an attractive entry point for investors

Brokerage projects robust earnings for NUE in the second and third quarter, fueled by increased demand and reduced competition in its plate steel unit, along with medium-term HRC prices

Brokerage believes steel prices may fall slightly in the second half of 2025, but less than market concerns with some offset from re-shoring efforts

As of last close, STLD stock down 14.7% and NUE stock down ~38% in the past 12 months