UPDATE: Deutsche Bank Raises PT on KapStone Paper and Packaging on Solid Accretion

In a report published Friday, Deutsche Bank reiterated its Buy rating on KapStone Paper and Packaging Corp. KS, and raised its price target from $26.00 to $28.00. Deutsche Bank noted, “KapStone is doing an impressive job. Accretion from USC acqn is solid @ $35MM (EBITDA, net of financing cost) in Yr 1 & demonstrates ability to grow equity value thru acqn's. The recent $2.00/share of special cash dividend & discipline around further acqns are good news. The B/S is healthy with net leverage @ 1.9x. Beyond FY13 earnings growth from pass-thru of 2012 c'board price hike, KapStone is well-positioned to pursue acquisitions.” KapStone Paper and Packaging Corp. closed on Thursday at $26.10.