International Paper (NYSE: IP) has recently received a number of price target changes and ratings updates:

  • 8/2/2017 – International Paper had its “sell” rating reaffirmed by analysts at Barclays PLC. They now have a $50.00 price target on the stock.
  • 7/28/2017 – International Paper had its “buy” rating reaffirmed by analysts at Vertical Research.
  • 7/27/2017 – International Paper had its “hold” rating reaffirmed by analysts at KeyCorp. They wrote, “We don’t quite understand investors’ willingness to ignore what has happened and focus seemingly exclusively on what could happen.””
  • 7/24/2017 – International Paper was downgraded by analysts at BidaskClub from a “buy” rating to a “hold” rating.
  • 7/17/2017 – International Paper was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
  • 7/14/2017 – International Paper was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “International Paper outperformed the Zacks categorized Paper and Related Products industry, with an average return of 4.2% compared with 0.5% for the latter, over the last month.  The company is undergoing restructuring initiatives to transform itself into a core packaging firm. International Paper aims to utilize its cash flow by investing in capital projects, reduce debt burden and improve shareholder return. The company is also taking prudent steps to drive further margin expansion and expects EBITDA to increase by 5% in the near future through diligent execution of operational plans. However, strength in U.S. dollars and soft macroeconomic conditions across the globe has led to volatility in raw material prices, affecting the performance of the company. Failure to realize synergies from acquisitions could also negatively impact the company's earnings. High pension obligations further remain a significant headwind for the company.”
  • 7/14/2017 – International Paper had its “buy” rating reaffirmed by analysts at Jefferies Group LLC. They now have a $66.00 price target on the stock, up previously from $65.00.
  • 7/13/2017 – International Paper was upgraded by analysts at Goldman Sachs Group, Inc. (The) from a “neutral” rating to a “buy” rating. They now have a $64.00 price target on the stock, up previously from $60.00.
  • 7/11/2017 – International Paper was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $64.00 price target on the stock. According to Zacks, “International Paper is undergoing restructuring initiatives to transform itself into a core packaging company. It intends to invest $300 million through 2017 to further improve its North American containerboard mill system, enhance product quality, and reduce manufacturing and delivery costs. These projects are expected to have a collective internal rate of return of 20%. The acquisition of Weyerhaeuser’s pulp business is further likely to strengthen its position in the global fluff pulp market and augment operating cash flow. In addition, the company expects the acquisition to generate annual synergies of approximately $175 million by the end of 2018 along with a higher flexibility to manage a wide portfolio of products to meet customer needs through superior R&D capabilities and priceless patent portfolio. The company also outperformed the industry year to date. However, huge pension debt obligations erode its profitability.”
  • 6/30/2017 – International Paper was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “International Paper is undergoing restructuring initiatives to transform itself into a core packaging company. It intends to invest $300 million through 2017 to further improve its North American containerboard mill system, enhance product quality, and reduce manufacturing and delivery costs. These projects are expected to have a collective internal rate of return of 20%. Moving forward, the company intends to focus more on high-return capital projects within its core businesses to fuel growth. The company also outperformed the industry in the last three months. However, International Paper has huge pension debt obligations that erode its profitability. In addition, strength in U.S. dollars and soft global macroeconomic conditions has led to volatility in raw material prices. Earnings estimates for the current quarter fell from 78 cents per share to 66 cents in the last three months, signifying negative investor sentiments for the company.”
  • 6/29/2017 – International Paper had its “hold” rating reaffirmed by analysts at KeyCorp. They wrote, “We are modestly increasing our 2017 and 2018 estimates for International Paper (IP) on account of higher export containerboard prices. U.S. OCC prices appear higher than IP expected going into the quarter, but we think the OCC drag will be slightly more than offset by higher export containerboard prices. We are now in line with consensus for 2Q17 as a result, though we remain below for 2017 and well below for 2018 (for 2018, we estimate adj. EBITDA of $3.85 billion, compared to consensus of $4.38 billion). Consensus is assuming 12% growth in 2018 on top of 12% growth in 2017, which doesn’t seem reasonable to us. Key Investment Points Following up on the last point, at no point since 2011 has IP had back-to-back years of double-digit EBITDA growth, and we don’t know why 2017/2018 would be different. The growth in 2017 is boosted by acquisitions, but even so, this expectation doesn’t make sense to us given the Company’s EBITDA performance over the past five years. Perhaps this time will be different, but we are not inclined to think so given how late we are in the current economic expansion.””
  • 6/16/2017 – International Paper was upgraded by analysts at BidaskClub from a “hold” rating to a “buy” rating.

International Paper Company (IP) opened at 52.21 on Friday. The stock has a 50 day moving average price of $56.11 and a 200 day moving average price of $53.69. The firm has a market cap of $21.56 billion, a price-to-earnings ratio of 26.52 and a beta of 1.46. International Paper Company has a 52 week low of $43.55 and a 52 week high of $58.95.

International Paper (NYSE:IP) last posted its quarterly earnings data on Thursday, July 27th. The basic materials company reported $0.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.64 by $0.01. International Paper had a return on equity of 27.09% and a net margin of 3.73%. The business had revenue of $5.77 billion for the quarter, compared to analysts’ expectations of $5.72 billion. During the same quarter last year, the firm earned $0.92 earnings per share. The business’s revenue was up 8.5% on a year-over-year basis. Equities research analysts expect that International Paper Company will post $3.47 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 15th. Stockholders of record on Tuesday, August 15th will be issued a dividend of $0.4625 per share. This represents a $1.85 annualized dividend and a dividend yield of 3.54%. The ex-dividend date of this dividend is Friday, August 11th. International Paper’s dividend payout ratio (DPR) is 93.91%.

In other news, insider Gregory T. Wanta sold 1,044 shares of the firm’s stock in a transaction on Tuesday, August 1st. The stock was sold at an average price of $55.22, for a total transaction of $57,649.68. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.64% of the stock is owned by company insiders.

International Paper Company is a paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. The Company’s segments include Industrial Packaging, Global Cellulose Fibers, Printing Papers and Consumer Packaging.

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