KeyCorp Reiterates Hold Rating for KapStone Paper and Packaging Corporation (KS), Report finds

KeyCorp Reiterates Hold Rating for KapStone Paper and Packaging Corporation (KS), Report finds

KapStone Paper and Packaging Corporation (NYSE:KS)‘s stock had its “hold” rating reissued by equities research analysts at KeyCorp in a research note issued on Wednesday.

The analysts wrote, “We maintain our 2017 adj. EBITDA estimate of $423M (consensus was much higher, at $460M), and are introducing a 2018 estimate of $433M. Regarding 2017, KS is now assuming significantly less of an annualized benefit from the October containerboard price increase than was previously the case and, on top of that, is guiding to partial offsets, including 2016 price reductions and the timing of the price increase implementation. KS is also guiding to $21M of fiber cost inflation (implying ~$30-$35/ton higher OCC prices) and $14 million of wage inflation related to the restoration of benefits curtailed in 2016. There are a number of assumptions one needs to make for a 2017 adj. EBITDA bridge, and here are ours: $65M of net pricing benefits (inclusive of better mix from lower exports), $25M of productivity benefits, and $6M from the non-recurrence of Hurricane Matthew, partially offset by $21M of fiber cost inflation, $7M of wage inflation, $14M of inflation from the restoration of benefits, $11M higher maintenance outage expense, and a $4M drag from fewer production tons. That’s how we get to $423M of adj. EBITDA for 2017.””

Several other brokerages also recently commented on KS. Keefe, Bruyette & Woods reaffirmed a “market perform” rating on shares of KapStone Paper and Packaging Corporation in a research note on Wednesday, October 12th. Wells Fargo & Company downgraded shares of KapStone Paper and Packaging Corporation from an “outperform” rating to a “market perform” rating in a research note on Monday, November 21st. Royal Bank Of Canada reissued an “outperform” rating on shares of KapStone Paper and Packaging Corporation in a research report on Wednesday, November 2nd. Zacks Investment Research downgraded shares of KapStone Paper and Packaging Corporation from a “strong-buy” rating to a “hold” rating in a research report on Saturday, November 5th. Finally, RBC Capital Markets reissued an “outperform” rating on shares of KapStone Paper and Packaging Corporation in a research report on Thursday, November 3rd. Eight research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $21.13.

KapStone Paper and Packaging Corporation (NYSE:KS) traded down 1.61% on Wednesday, hitting $23.80. 2,007,401 shares of the company’s stock were exchanged. The firm has a 50 day moving average price of $23.00 and a 200-day moving average price of $19.55. KapStone Paper and Packaging Corporation has a 52-week low of $8.95 and a 52-week high of $24.98. The stock has a market cap of $2.30 billion, a P/E ratio of 29.02 and a beta of 2.82.

KapStone Paper and Packaging Corporation (NYSE:KS) last issued its earnings results on Wednesday, February 8th. The company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.25 by $0.01. KapStone Paper and Packaging Corporation had a return on equity of 11.30% and a net margin of 2.60%. The firm earned $777 million during the quarter, compared to analysts’ expectations of $760.42 million. During the same period in the previous year, the firm earned $0.17 earnings per share. The firm’s quarterly revenue was up 1.7% compared to the same quarter last year. Analysts predict that KapStone Paper and Packaging Corporation will post $1.12 earnings per share for the current fiscal year.

A number of institutional investors have recently made changes to their positions in KS. IndexIQ Advisors LLC bought a new position in KapStone Paper and Packaging Corporation during the third quarter valued at about $126,000. Amalgamated Bank bought a new position in KapStone Paper and Packaging Corporation during the second quarter valued at about $162,000. Teacher Retirement System of Texas boosted its position in KapStone Paper and Packaging Corporation by 20.3% in the second quarter. Teacher Retirement System of Texas now owns 12,753 shares of the company’s stock valued at $166,000 after buying an additional 2,154 shares in the last quarter. National Asset Management Inc. bought a new position in KapStone Paper and Packaging Corporation during the third quarter valued at about $217,000. Finally, Mason Street Advisors LLC bought a new position in KapStone Paper and Packaging Corporation during the second quarter valued at about $218,000. Institutional investors own 81.98% of the company’s stock.

KapStone Paper and Packaging Corporation Company Profile

KapStone Paper and Packaging Corporation is engaged in the production of containerboard, corrugated products and specialty paper. The Company operates through two segments: Paper and Packaging, and Distribution. The Company operates approximately four paper mills. It produces approximately 2.7 million tons of containerboard and specialty paper at its mills in North Charleston, South Carolina; Roanoke Rapids, North Carolina; Cowpens, South Carolina, and Longview, Washington.

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KeyCorp Reiterates Hold Rating for KapStone Paper and Packaging Corporation (KS)

KeyCorp Reiterates Hold Rating for KapStone Paper and Packaging Corporation (KS)

KapStone Paper and Packaging Corporation (NYSE:KS)‘s stock had its “hold” rating reissued by equities research analysts at KeyCorp in a research note issued on Wednesday.

The analysts wrote, “We maintain our 2017 adj. EBITDA estimate of $423M (consensus was much higher, at $460M), and are introducing a 2018 estimate of $433M. Regarding 2017, KS is now assuming significantly less of an annualized benefit from the October containerboard price increase than was previously the case and, on top of that, is guiding to partial offsets, including 2016 price reductions and the timing of the price increase implementation. KS is also guiding to $21M of fiber cost inflation (implying ~$30-$35/ton higher OCC prices) and $14 million of wage inflation related to the restoration of benefits curtailed in 2016. There are a number of assumptions one needs to make for a 2017 adj. EBITDA bridge, and here are ours: $65M of net pricing benefits (inclusive of better mix from lower exports), $25M of productivity benefits, and $6M from the non-recurrence of Hurricane Matthew, partially offset by $21M of fiber cost inflation, $7M of wage inflation, $14M of inflation from the restoration of benefits, $11M higher maintenance outage expense, and a $4M drag from fewer production tons. That’s how we get to $423M of adj. EBITDA for 2017.””

Several other brokerages also recently commented on KS. Keefe, Bruyette & Woods reaffirmed a “market perform” rating on shares of KapStone Paper and Packaging Corporation in a research note on Wednesday, October 12th. Wells Fargo & Company downgraded shares of KapStone Paper and Packaging Corporation from an “outperform” rating to a “market perform” rating in a research note on Monday, November 21st. Royal Bank Of Canada reissued an “outperform” rating on shares of KapStone Paper and Packaging Corporation in a research report on Wednesday, November 2nd. Zacks Investment Research downgraded shares of KapStone Paper and Packaging Corporation from a “strong-buy” rating to a “hold” rating in a research report on Saturday, November 5th. Finally, RBC Capital Markets reissued an “outperform” rating on shares of KapStone Paper and Packaging Corporation in a research report on Thursday, November 3rd. Eight research analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $21.13.

KapStone Paper and Packaging Corporation (NYSE:KS) traded down 1.61% on Wednesday, hitting $23.80. 2,007,401 shares of the company’s stock were exchanged. The firm has a 50 day moving average price of $23.00 and a 200-day moving average price of $19.55. KapStone Paper and Packaging Corporation has a 52-week low of $8.95 and a 52-week high of $24.98. The stock has a market cap of $2.30 billion, a P/E ratio of 29.02 and a beta of 2.82.

KapStone Paper and Packaging Corporation (NYSE:KS) last issued its earnings results on Wednesday, February 8th. The company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.25 by $0.01. KapStone Paper and Packaging Corporation had a return on equity of 11.30% and a net margin of 2.60%. The firm earned $777 million during the quarter, compared to analysts’ expectations of $760.42 million. During the same period in the previous year, the firm earned $0.17 earnings per share. The firm’s quarterly revenue was up 1.7% compared to the same quarter last year. Analysts predict that KapStone Paper and Packaging Corporation will post $1.12 earnings per share for the current fiscal year.

A number of institutional investors have recently made changes to their positions in KS. IndexIQ Advisors LLC bought a new position in KapStone Paper and Packaging Corporation during the third quarter valued at about $126,000. Amalgamated Bank bought a new position in KapStone Paper and Packaging Corporation during the second quarter valued at about $162,000. Teacher Retirement System of Texas boosted its position in KapStone Paper and Packaging Corporation by 20.3% in the second quarter. Teacher Retirement System of Texas now owns 12,753 shares of the company’s stock valued at $166,000 after buying an additional 2,154 shares in the last quarter. National Asset Management Inc. bought a new position in KapStone Paper and Packaging Corporation during the third quarter valued at about $217,000. Finally, Mason Street Advisors LLC bought a new position in KapStone Paper and Packaging Corporation during the second quarter valued at about $218,000. Institutional investors own 81.98% of the company’s stock.

KapStone Paper and Packaging Corporation Company Profile

KapStone Paper and Packaging Corporation is engaged in the production of containerboard, corrugated products and specialty paper. The Company operates through two segments: Paper and Packaging, and Distribution. The Company operates approximately four paper mills. It produces approximately 2.7 million tons of containerboard and specialty paper at its mills in North Charleston, South Carolina; Roanoke Rapids, North Carolina; Cowpens, South Carolina, and Longview, Washington.

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