UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on KapStone Paper and Packaging Corp. Following Results Above First Call Mean

In a report published Thursday, BMO Capital Markets analyst Stephen Atkinson reiterated an Outperform rating on KapStone Paper and Packaging Corp. (NYSE: KS), and raised the price target from $52.00 to $56.00.In the report, BMO Capital Markets noted, “Q3/13 EPS were $1.05 compared to the First Call Mean of $0.91 and our estimate of $1.01. This result excludes charges for non-cash stock compensation and acquisition start-up expenses of ($0.13/share). Adjusted EBITDA was $116 million, $4 million above our estimate We attribute the outperformance to the Longview Fiber acquisition. Free cash flow before w/c changes was $73 million representing an annualized free cash flow yield of 13%.”KapStone Paper and Packaging Corp. closed on Wednesday at $45.67.