The firm has an $18 price target on shares of the Northbrook, IL-based paper and packaging company.
BofA/Merrill Lynch is encouraged by the short-term improving conditions in the containerboard market and sees limited downside risk to shares, the Fly noted.
The kraft paper market has also skewed more positively, according to the firm.
Shares of KapStone closed higher on Monday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well.
But the team also finds weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KS