UPDATE: Deutsche Bank Downgrades KapStone Paper and Packaging on Valuation

In a report published Tuesday, Deutsche Bank analyst Mark Wilde downgraded the rating on KapStone Paper and Packaging KS from Hold to Sell, but reiterated the $38.00 price target.

In the report, Deutsche Bank noted, “Our call is based on valuation. The stock has rallied by ~$13/share since KapStone announced the acquisition of Longview Fibre in June. At 7.9x our 2014 EBITDA est, KS is the highest multiple containerboard name on our coverage list. We think expectations are quite strong and leave little room for error. With the stock at $43, we think the prudent approach is to take some money off the table and revisit the stock for a better entry point in the future. Downgrade to Sell. We remain big fans of the KS management team led by Roger Stone, Matt Kaplan and Andrea Tarbox. From their inception as a $6/share SPAQ in 2005, they've created impressive returns for shareholders.”

KapStone Paper and Packaging closed on Monday at $42.94.

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Posted In: Analyst ColorDowngradesAnalyst RatingsDeutsche BankMark Wilde
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