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UPDATE: Deutsche Bank Upgrades KapStone Paper And Packaging On Best LT Containerboard Play

Dwight Einhorn

In a report published Monday, Deutsche Bank analyst Debbie Jones upgraded the rating on KapStone Paper and Packaging Corp. (NYSE: KS) from Hold to Buy, and raised the price target from $26.00 to $36.00.

In the report, Deutsche Bank noted, “KapStone is a North American producer of unbleached kraft paper and containerboard/corrugated products. The stock has retreated from highs seen in early June. We believe this is partially due to caution regarding new containerboard capacity coming on-stream in North America and investor concerns over the health of containerboard & corrugated box pricing. We think that despite lack of a pricing catalyst, KapStone has significant levers to drive earnings growth over the next 1-3 years. We are making an overdue revision to our 12-month price target from $26 to $36/share. Given compelling valuation we are boosting our rating from Hold to Buy.”

KapStone Paper and Packaging closed on Friday at $30.16.

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