UPDATE: Goldman Sachs Downgrades Boise to Neutral, Raises PT on Valuation

In a report published Thursday, Goldman Sachs analyst Alex Ovshey downgraded the rating on

from Buy to Neutral, but raised the price target from $10.50 to $13.00. In the report, Goldman Sachs noted, “We downgrade shares of Boise Inc. (BZ) to Neutral from Buy as there is 4% potential upside to our 12-month $13 (was $10.50) price target vs. 15%, on average, for our Buy-rated names IP (on CL) and RKT. On 09/16, Packaging Corp. (PKG, Neutral) announced plans to acquire BZ for $12.55/share including debt of $714 mn, which equates to an EV of $1.995 bn. On 09/16, BZ shares were +26% vs. S&P 500 +0.6%). PKG expects the transaction to close in 4Q2013, subject to regulatory approvals. Since we added the shares to the Buy List on 05/22/2012, BZ shares are up 82% vs. the S&P500 up 31%. Over the past 12 months BZ shares are +53% vs. S&P 500 +18%.” Boise closed on Wednesday at $12.55.