UPDATE: Deutsche Bank Upgrades KapStone Paper and Packaging Corp. to Buy, Raises PT on Best LT Containerboard Play

In a report published Monday, Deutsche Bank analyst Debbie Jones upgraded the rating on

from Hold to Buy, and raised the price target from $26.00 to $36.00. In the report, Deutsche Bank noted, “KapStone is a North American producer of unbleached kraft paper and containerboard/corrugated products. The stock has retreated from highs seen in early June. We believe this is partially due to caution regarding new containerboard capacity coming on-stream in North America and investor concerns over the health of containerboard & corrugated box pricing. We think that despite lack of a pricing catalyst, KapStone has significant levers to drive earnings growth over the next 1-3 years. We are making an overdue revision to our 12-month price target from $26 to $36/share. Given compelling valuation we are boosting our rating from Hold to Buy.” KapStone Paper and Packaging Corp. closed on Friday at $30.16.