(This is CNBC Pro’s live coverage of Thursday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) Steelmaker Nucor and drive-through beverage company Dutch Bros were in focus for analysts Thursday who see room for growth in both stocks. Rising steel prices should benefit Nucor, while Dutch Bros has strong growth potential despite worries from investors, analysts said in calls on the two beaten-down stocks. Check out the latest calls and chatter below. All times ET. 6:23 a.m.: Morgan Stanley upgrades Nucor to overweight, sees strong earnings growth ahead Nucor shares could see a comeback as steel prices slip, according to Morgan Stanley. Analyst Carlos De Alba upgraded Nucor to overweight from equal weight, but lowered his price target for the steelmaker by $11 to $176, which still implies roughly 24.6% potential upside for the stock. This year, shares are down more than 18%. “The stock has de-rated vs. its peers despite the strong earnings growth and robust cash generation we expect in 2025 and 2026,” the analyst said in a Thursday note to clients. NUE YTD line Nucor shares this year The recent resurgence in the Dodge Momentum Index, a measure of nonresidential building projects in the planning process, also suggests that more projects are entering the construction pipeline, which should benefit Nucor given its high exposure to nonresidential construction, De Alba said. He noted that steel prices have fallen about 40% from their peak to trough levels, following an increase of imported material beginning this year. “We think steel prices have bottomed given the tighter import spread, but don’t expect prices to rally much,” De Alba added. “That said, we see limited upside to flat steel prices given our forecast of muted demand in 2H24..… but we think structural changes in the US steel market will support higher prices ahead vs. the 2010’s.” — Pia Singh 6:17 a.m.: Dutch Bros shares could jump almost 30% as concerns look ‘overblown’, according to UBS UBS thinks investors should buy the dip in drive-through coffee chain company Dutch Bros as the company has “energizing growth potential.” Analyst Dennis Geiger upgraded shares from neutral to buy and kept his $39 price target, which implies roughly 29% potential upside. Dutch Bros shares have lost about 4.5% this year and more than 28% over the past month after the company guided fiscal year 2024 revenue and same-store sales below expectations. Geiger said his upgrade is driven by four primary catalysts: Concerns over the company’s slowing growth appear “overblown” Catalysts to accelerate same store sales into 2025 Should be able to maintain its total addressable market, or TAM, of 4,000 stores — allowing for at least mid-teens level store growth over the next three to five years The stock’s risk/reward ratio “looks attractive” and presents a buying opportunity for investors “Improving [same-store sales] momentum into ’25 reflects impactful drivers, including: the launch of mobile order & pay, menu innovation, digital & loyalty gains, and marketing & promotions,” the analyst said, adding that he’s “encouraged by benefits BROS is seeing to improving new store productivity from adjustments to real estate & development strategy and marketing investment.” — Pia Singh
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