Deutsche Bank Upgrades KapStone Paper & Packaging (KS) to Buy; Time to Get More Aggressive

Deutsche Bank upgraded KapStone Paper & Packaging (NYSE: KS) from Hold to Buy with a price target of $21.00.

Deutsche analyst says, "We think it’s time to become more aggressive on KapStone. Since initiating our coverage just over a year ago (1/3/11, $15.65), we’ve maintained a consistent Hold rating. With signs now suggesting that containerboard markets are better-than-we-expected, we're boosting our rating to Buy and our PT to $21/share. For now, we're not making any changes to our FY12 EPS est of $1.85. Our $21 PT equates to 6.2x EV/EBITDA multiple on our FY12 est, but doesn’t factor an estd $125-130MM of debt reduction that we think KS is likely to achieve in 2012."

For an analyst ratings summary and ratings history on KapStone Paper & Packaging click here. For more ratings news on KapStone Paper & Packaging click here.

Shares of KapStone Paper & Packaging closed at $16.05 yesterday.

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