Analyst Anthony Pettinari from Citi maintained a Buy rating on International Paper Co and keeping the price target at $55.00.
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Anthony Pettinari has given his Buy rating due to a combination of factors that indicate a positive outlook for International Paper Co. One significant factor is the potential closure of a recycled containerboard mill in Croatia, owned by DS Smith, which could help alleviate oversupply concerns in the European market. This move is expected to improve industry operating rates and support profitability, which is currently at trough levels.
Additionally, International Paper Co. has set a target to achieve a $600 million run-rate EBITDA by 2025 through cost-cutting measures, including plant closures and procurement savings. The company’s strategic initiatives in the EMEA region are also noteworthy, with plans to increase EBITDA significantly by 2027. The market in this region is growing steadily, and International Paper holds a strong market position, particularly in countries like France, Italy, and the UK. These factors contribute to an expected share price return of 11.9%, supporting the Buy rating.
In another report released on August 28, Bank of America Securities also upgraded the stock to a Buy with a $57.00 price target.