Nucor Cautious Into 2Q11, Goldman Raises PT To $42

Goldman Sachs has published a research report on Nucor Corporation NUE as the company exhibits "cautious optimism" going into 2Q11. In the report, Goldman writes "Similar to the other steel producers that have reported this week, we believe that the bulk of price realization for Nucor will be delayed into 2Q from 1Q2011 and that 2H2011 will be a bit stronger than previously anticipated due to our higher steel price assumptions. Therefore, we are adjusting our 1Q, 2Q, 3Q, and 4Q estimates for 2011 to $0.26, $0.76, $0.67, and $0.51 from $0.61, $0.68, $0.54, and $0.32. Our full-year 2011 estimate is now $2.20, up from $2.15. We are also raising our 2012 estimate to $3.75 from $3.50 on higher steel price assumptions, and introducing our 2013 EPS estimate of $4.25. Our higher 2011 estimates drive an increase in our six-month 2011E P/E- and EV/EBITDA-based target price to $42 from $40." Goldman Sachs maintains its Neutral rating and has raised the price target from $40 to $42. Nucor Corporation closed yesterday at $45.40.