** Shares of Nucor NUE.N rise 3.2% to $138, while Steel Dynamics STLD.O climbs 2.8% to $134

** Jefferies raises Nucor PT to $135 from $120, a premium of nearly 1% to the stock's last close

** Also lifts Steel Dynamics PT to $155 from $145, an upside of 19% to the shares last close

** Says U.S. steel prices and producer stocks have surged following Trump's tariff hike to 50% and sees stronger upside potential, despite ongoing tariff uncertainties

** Adds steel prices likely to remain well-supported over the next three to five years, leading to product diversification for both companies

** Says earnings from major steel producers rose in Q2 despite mixed guidance, and expects further gains in Q3 as trade and political risks ease and rate cuts loom

** Rating on Nucor unchanged at 'hold' and Steel Dynamics unaltered at 'buy'

** Nucor and Steel Dynamics both hold a consensus 'buy' rating, based on evaluations from 17 and 15 brokerages, respectively - data compiled by LSEG

** Including session moves, shares of Nucor up 18.6% YTD and shares of Steel dynamics up 17.6% YTD

(Reporting by Apratim Sarkar)

((Apratim.Sarkar@thomsonreuters.com))