Analyst Philip Ng of Jefferies maintained a Buy rating on International Paper Co (IP – Research Report), retaining the price target of $71.00.
Philip Ng has given his Buy rating due to a combination of factors that highlight International Paper Co’s potential for significant growth. The company has outlined a strategic plan to increase its EBITDA from $2 billion to $5.7 billion by 2027, which, if successfully executed, could potentially double the stock’s value in two years. Despite a challenging 2025 forecast, particularly in Europe, the company anticipates a recovery in box prices and demand, which should help close the performance gap by the end of the year.
Moreover, International Paper Co is focusing on operational efficiencies and synergies, particularly through its 80/20 strategy, which is expected to yield substantial cost savings and improved integration. The company is also investing in its box network and targeting high-return investments, which should enhance its return on invested capital. Additionally, the company’s improved net promoter score indicates a better customer experience, positioning it well for market share recovery. These strategic initiatives, combined with a strong dividend yield and reinvestment plans, underpin Ng’s optimistic outlook for the stock.
In another report released today, RBC Capital also reiterated a Buy rating on the stock with a $64.00 price target.