UPDATE: DA Davidson Downgrades Packaging Corporation of America to Neutral on Valuation

DA Davidson downgraded its rating on Packaging Corporation of America

from Buy to Neutral and reduced its price target from $40 to $37.50. DA Davidson noted, "Packaging Corp. shares have done everything we expected them to do and then some (we launched coverage one year ago when the stock was below $24 and have been Buy rated the entire period). We are raising our target by $2.50 to $37.50 (a blend of 6.75x EBITDA multiple which yields a $38 target and a 13x PE multiple which yields a $37 target) to reflect higher earnings estimates, but downgrading the shares to NEUTRAL given the relatively low potential return (4% equity upside plus a 2.8% dividend yield) to our revised target." Packaging Corporation of America closed at $36.04 on Friday.