International Paper Co, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Lars Kjellberg from Stifel Nicolaus upgraded the rating on the stock to a Buy and gave it a $57.80 price target.
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Lars Kjellberg has given his Buy rating due to a combination of factors that suggest International Paper Co is on the verge of significant performance improvements. The company is approaching a pivotal moment where strategic changes are expected to enhance profitability and margins. This optimism is partly driven by the recent disposal of underperforming assets, such as the Global Cellulose Fiber operations, which is anticipated to streamline operations and focus resources on more profitable segments.
Furthermore, the implementation of a more realistic capital expenditure plan aligns with industry standards and is expected to support sustained margin expansion. The company’s 80/20 strategy, which involves targeted investments and the closure of less competitive facilities, is projected to yield substantial cost savings. Additionally, potential market catalysts, such as improving US box shipments and price increases in the containerboard sector, could further bolster earnings. These strategic moves and market conditions underpin Kjellberg’s upgraded recommendation to Buy, reflecting confidence in the company’s ability to achieve its financial targets.
In another report released on October 13, Truist Financial also maintained a Buy rating on the stock with a $53.00 price target.