International Paper downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded International Paper (IP) to Neutral from Overweight with a price target of $54, down from $55. The company’s Q2 results were disappointing relative to expectations, and while the firm had flagged a likely miss in EMEA, its EBITDA was still about 4% worse than expected, the analyst tells investors in a research note. The improving US market supply side picture and market discipline are positive tailwinds for International Paper, but this is a tailwind for peers as well, the firm notes, adding that there are better ways to play the U.S. market tightening and a turnaround story, with Smurfit WestRock (SW) trading about 20% cheaper than International Paper.