UPDATE: Bank of America Raises PT on Packaging Corporation Following Merger Agreement with Boise

In a report published Tuesday, Bank of America analyst George L. Staphos reiterated a Buy rating on

, and raised the price target from $61.00 to $66.00. In the report, Bank of America noted, “Packaging Corp. announced that it has entered into a definitive merger agreement with Boise Inc. (BZ; not covered) in which PKG will acquire BZ for $12.55/share in cash plus the assumption of $714mn in BZ debt as of June 30, 2013. Including all other long-term liabilities (about $380mn), this equates to about 8.0x EBITDA on a LTM basis, before synergies, below peer multiples.” Packaging Corporation of America closed on Monday at $60.43.