Deutsche Bank downgrades KapStone Paper & Packaging (KS) noting that "at 7.9x 2014 EBITDA...


Deutsche Bank downgrades KapStone Paper & Packaging (KS) noting that "at 7.9x 2014 EBITDA estimates, KS is the highest multiple containerboard name on [the] coverage list."
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Comments (2)
  • Philip Marlowe
    , contributor
    Comments (1573) | Send Message
     
    Deutsche is not including the longview acquisition in their calculation. P/EBITDA is 5.6 for 2013 for this year (and this is using the company's very conservative estimate). It will be much lower for 2014.

     

    Deutsche has a history of trying to knock down KS's price in order to allow somebody to get cheaper shares. Last fall they downgraded KS on the theory that their price increase is not sticking. The price went down drastically. The analyst then said that he changed his mind, that he thinks the price increase is sticking after all and upgraded KS. The price shot up. I suspect the same thing is happening now.
    9 Jul 2013, 02:59 PM Reply Like
  • dhisrael
    , contributor
    Comment (1) | Send Message
     
    I have those same sentiments about Deutsche. Their rank and grade is out of sync with the facts and KS successes in actuality. They make drastic statement based on vague assumptions. After the while, they have, for me, become useless background noise!
    13 Feb 2014, 05:43 PM Reply Like
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