UPDATE: UBS Investment Research Reiterates on Steel Dynamics on Market Leader Position

In a report published Tuesday, UBS Investment Research analyst Matt Murphy reiterated a Buy rating on

, and raised the price target from $17.00 to $20.00. In the report, UBS Investment Research noted, “STLD has consistently produced industry leading unit free cash flows over the last five years. These results have been driven by best-in-class mill efficiency and quality products and service, allowing STLD to run at higher utilization rates than competitors. It has also been advancing its raw materials integration strategy and investing in downstream SBQ capacity, which should improve margins further, notwithstanding a slow assumed ramp-up at Mesabi Nugget over the course of 2014/15. We rate Steel Dynamics a Buy and our $20.00 PT is based on a 7.0x EV/EBITDA (2015) multiple.” Steel Dynamics closed on Monday at $18.29.