UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Removes PT on Nucor Corporation Following Gallatin Deal

In a report published Tuesday, Morgan Stanley analyst Evan L. Kurtz reiterated an Equal-Weight rating on

, but removed the $62.00 price target. In the report, Morgan Stanley noted, “Nucor is paying $630m in cash ($770m before tax benefits) for Gallatin Steel, a 5.3x multiple on management's 2015e EBITDA of $120m (excluding synergies). Gallatin's ~1.8 mt of flat-rolled capacity will increase Nucor's total flat-rolled capacity to ~13 mt. The company expects the deal to be accretive to both EPS and cash flow. The transaction is expected to close promptly.” Nucor Corporation closed on Monday at $55.35.