Analyst George Staphos of Bank of America Securities reiterated a Hold rating on International Paper Co, reducing the price target to $55.00.
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George Staphos has given his Hold rating due to a combination of factors impacting International Paper Co. Despite positive changes within the company, Staphos believes there are more promising opportunities elsewhere in the sector. The company’s recent quarterly performance was weaker than expected, particularly in the EMEA region, due to market sluggishness and cost-related issues.
Furthermore, the guidance for the upcoming quarter is only in line or slightly below expectations, requiring significant improvement from the previous quarter’s performance. Additionally, the containerboard sector is facing challenges, including a price-fixing class action suit, which could create further headwinds for the company. As a result, Staphos has adjusted his forecasts downward and revised the price objective to $55, reflecting these concerns.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IP in relation to earlier this year.