Citi downgrades Nucor, says infrastructure news is already priced in
It's too late for investors to get big returns from Nucor ahead of major infrastructure spending in the U.S., according to Citi. Shares of the steel producer rose 3.6% on Monday, as part of a broader rally among infrastructure names after the House of Representatives passed a $1 trillion infrastructure bill over the weekend. However, analyst Alexander Hacking downgraded Nucor to neutral from buy, saying in a note to clients Tuesday that the good news was largely priced in to Nucor's shares. "We are structurally bullish on the steel sector but tactically cautious as flat steel prices appear to have peaked. We acknowledge NUE's quality and exposure to long steel/infrastructure. But broadly see the stock fairly valued now and potentially more vulnerable than peers given its outperformance (+120% YTD) and higher multiples/ lower [free cash flow] yield," the note said. The price of steel could be cut in half from its abnormally high pandemic levels in the near term, Citi said, which should weigh on stocks even if the prices remain high by historical standards. Citi did raise its price target Monday to $120 per share from $105 per share, but the new target is just 3% above where the stock closed Monday. Elsewhere in the steel producer industry, Citi has neutral ratings on Cleveland-Cliffs and U.S. Steel , as well as a buy rating on Steel Dynamics . —CNBC's Michael Bloom contributed to this report.

Bundles of steel from Nucor Corp. sit for sale to at Thompson Building Materials in Lomita, California, U.S., on Thursday, Aug. 30, 2012. Patrick Fallon | Bloomberg | Getty Images