Analysts Positive on Nucor and Dutch Bros

Rising steel prices are expected to benefit Nucor, as analysts predict a strong earnings growth trajectory for the steelmaker. Morgan Stanley upgraded Nucor from equal weight to overweight, despite lowering its price target by $11 to $176. Analyst Carlos De Alba noted that Nucor's stock has underperformed compared to peers, even as robust cash generation is anticipated for 2025 and 2026. The recent increase in the Dodge Momentum Index, which tracks nonresidential building projects, suggests a positive outlook for Nucor, although demand for flat steel may remain muted in the latter half of 2024. In a separate analysis, Dutch Bros has been identified as a potential growth stock, despite recent investor concerns. UBS analysts recommend buying the dip in the drive-through coffee chain, which has seen its shares decline by 4.5% this year and over 28% in the past month. The downgrade in fiscal year 2024 revenue and same-store sales guidance has led to skepticism, but UBS believes these concerns are exaggerated. Analyst Geiger highlighted four key catalysts for Dutch Bros, including the potential for accelerated same-store sales growth and a stable total addressable market of 4,000 stores. The stock's risk/reward ratio is deemed attractive, presenting a buying opportunity. Improvements in same-store sales momentum are expected to stem from innovations in mobile ordering, menu updates, and enhanced marketing strategies, which could bolster the company's performance moving forward.