STLD - Steel is for real Credit Suisse says in upgrading Nucor Steel Dynamics

Nucor (NUE) +2% and Steel Dynamics (STLD) +2.8% pre-market after Credit Suisse upgrades the pair - as well as Canada's Stelco (STZHF) - to Overweight from Neutral, expecting the stocks will benefit from capital efficient capacity growth and strong free cash flow.The firm raises its outlook for the broader U.S. steel sector (SLX) to Overweight, saying "the market is awarding little credit for the recent historic rally in U.S. flat rolled steel prices," with hot rolled coil steel trading at record highs of ~$1,100/ton.While HRC prices likely will peak in Q2, "steel prices can remain well above the historical average of $600/ton through 2021, as new capacity likely won't meaningfully affect market balances until Q4."Credit Suisse remains Neutral on Cleveland-Cliffs (CLF) on valuation but acknowledges strong medium-term free cash flow yield.The firm rates U.S. Steel (X) at Underperform, citing valuation and sizable capital spending needs ahead.U.S. Steel -7.6% pre-market after announcing

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Steel is for real, Credit Suisse says in upgrading Nucor, Steel Dynamics