Oct. 17 at 7:41 PM
Stifel upgraded International Paper to "Buy" from "Hold," citing the company's recovery plan and profitability improvements. The price target remains at
$57.80.
The analyst noted that initial optimism after CEO Andy Silvernail's appointment has been replaced by more realistic expectations due to challenges from the DS Smith acquisition. Key actions, including the
$1.5 billion sale of underperforming Global Cellulose Fiber operations, are positioning the company for a strategic shift aimed at improving margins.
Adjusted EBITDA is expected to reach the company's 2027 target of
$5.5-6 billion. However, market headwinds may lower 2025-2027 comparable EBITDA estimates by around 5%, or 9% including the fiber division sale.
Despite the recovery still lagging compared to peers, recent actions and valuation adjustments make the stock attractive.
$IP