UPDATE: UBS Securities Reiterates Buy Rating, Raises PT on Steel Dynamics on Columbus Potential

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

, and raised the price target from $21.00 to $23.00. In the report, UBS Securities noted, “STLD expects Columbus to generate some $270M in EBITDA in 2015E or ~$90/t, as implied by the 6x EV/EBITDA (2015E) multiple STLD models in its $1,625M acquisition cost. We feel this is reasonable, and loftier targets are likely achievable over time; the addition of another $20M in synergies in 2016E could bring the total to $95/t. With time, STLD noted >$100/t levels could be sustained. If we assume STLD can sustain $110/t at Columbus (not too far a stretch from the $103/ton reported in Q1/14), this translates to $374M in EBITDA at full run-rates, $100M above 2015E.” Steel Dynamics closed on Monday at $20.75.