UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Packaging Corp. of America

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Packaging Corp. of America

, and raised its price target from $37.00 to $39.00. Deutsche Bank noted, “PKG should pass-thru most of a current box price increase by 1Q13, boosting EBITDA margins. At the same time, PKG is out-performing industry volumes as it expands its converting business. 2011 energy projects are delivering better-than-expected returns, even @ relatively low energy/gas prices. With a high degree of energy self-sufficiency & low OCC usage, PKG is well-hedged against most cost issues. A strong BS & robust cash flows provide lots of financial flexibility. We think PKG could easily raise its dividend from $1.00 to $1.25 by year-end. Raising PT from $37 to $39. Maintain Buy.” Packaging Corp. of America closed on Tuesday at $36.26.