Goldman Sachs Backs Away From Two Steel Stocks (NUE, GNA)

After Nucor Corp. (NUE-NYSE) lowered guidance, Goldman Sachs has decided to withdraw it from the Americas Conviction Buy List.  It notes that the stock appears undervalued to the $71.00 price target and it is keeping its official BUY Rating on the stock, but it says there is no near-term catalyst on the stock.

Gerdau AmeriSteel Corp. (GNA-NYSE) has also been downgraded from a Neutral down to a SELL Rating, and added to Americas Conviction Sell List.  It sees near-term weakness in demand for end products and is overvalued compared to Goldman’s target of $13.00.  2007 estimates were lowered from $1.50 EPS down to $1.45.

Jon C. Ogg
June 13, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.