The Globe and Mail reports in its Wednesday edition that TD Cowen analyst Sean Steuart is keeping his "buy" recommendation for Transcontinental intact. The Globe's David Leeder writes that Mr. Steuart bumped his share target ahead by a loonie to $28, matching the consensus. Mr. Steuart thinks Transcontinental's sale of its flagship packaging business to privately held, Cincinnati, Ohio-based ProAmpac Holdings for slightly more than $2.2-billion is "transformational" and offers "attractive valuation terms" while realizing value not previously reflected in its trading multiple. Mr. Steuart says in a note: "Transcontinental is selling the packaging business at an attractive valuation. ... The implied valuation is attractive at 8.7 times EV/EBITDA. This is at the top end of our previously published sum-of-the-parts range for this segment. The decision was motivated by flexible packaging growth constraints and a trading value disconnect. As a mid-scale player in an increasingly competitive industry, Transcontinental struggled to find value-accretive growth options. On the conference call, management underscored the gap between the company's trading multiple and valuation parameters for prospective packaging deals."