KapStone Paper and Packaging Corp. Rating Increased to Buy at Deutsche Bank (KS)
KapStone Paper and Packaging Corp. (NYSE:KS) was upgraded by stock analysts at Deutsche Bank from a “hold” rating to a “buy” rating in a report issued on Monday, TheFlyOnTheWall.com reports. The firm currently has a $36.00 price objective on the stock, up from their previous price objective of $26.00. Deutsche Bank’s price objective would suggest a potential upside of 19.36% from the company’s current price.
The analysts wrote, “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.”
Shares of KapStone Paper and Packaging Corp. (NYSE:KS) opened at 30.99 on Monday. KapStone Paper and Packaging Corp. has a 1-year low of $20.39 and a 1-year high of $34.43. The stock’s 50-day moving average is $30.55 and its 200-day moving average is $29.29. The company has a market cap of $2.973 billion and a price-to-earnings ratio of 17.05. KapStone Paper and Packaging Corp. also was the target of a large growth in short interest in July. As of July 31st, there was short interest totalling 2,388,651 shares, a growth of 43.6% from the July 15th total of 1,663,339 shares. Based on an average daily volume of 1,398,135 shares, the short-interest ratio is currently 1.7 days. Approximately 2.9% of the shares of the stock are short sold.
KapStone Paper and Packaging Corp. (NYSE:KS) last announced its earnings results on Wednesday, July 30th. The company reported $0.58 earnings per share (EPS) for the quarter, missing the Thomson Reuters consensus estimate of $0.60 by $0.02. The company had revenue of $590.00 million for the quarter, compared to the consensus estimate of $574.30 million. During the same quarter in the prior year, the company posted $0.44 earnings per share. The company’s quarterly revenue was up 81.0% on a year-over-year basis. On average, analysts predict that KapStone Paper and Packaging Corp. will post $2.18 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks downgraded shares of KapStone Paper and Packaging Corp. from a “neutral” rating to an “underperform” rating in a research note on Thursday, August 7th. They now have a $29.30 price target on the stock. Separately, analysts at Vertical Research downgraded shares of KapStone Paper and Packaging Corp. to a “hold” rating in a research note on Thursday, July 31st. Finally, analysts at KeyCorp raised their price target on shares of KapStone Paper and Packaging Corp. from $30.00 to $35.00 in a research note on Wednesday, June 11th. They now have a “buy” rating on the stock. One investment analyst has rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $42.72.
In other KapStone Paper and Packaging Corp. news, Director Robert J. Bahash purchased 5,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were purchased at an average cost of $29.92 per share, for a total transaction of $149,600.00. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
KapStone Paper and Packaging Corporation (NYSE:KS) is an integrated manufacture and sale of unbleached kraft paper and corrugated products for industrial and consumer markets.
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