BMO Capital analyst David Gagliano raised the price target on Steel Dynamics (NASDAQ: STLD) to $40.00 (from $35.00) while maintaining an Outperform rating.

"We are raising the target price from $35 to $40, to reflect a)recent improvements in underlying fundamentals, and b)our view STLD shares still do not reflect the benefits associated with company-specific volume growth over the next three years," the analyst commented.