Stifel Nicolaus analyst Lars Kjellberg maintained a Hold rating on International Paper Co (IP – Research Report) yesterday and set a price target of $57.80.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Lars Kjellberg’s rating is based on International Paper Co.’s strategic actions aimed at improving performance, particularly through the closure of several facilities including the Red River mill in Louisiana. This decision is expected to address excess supply and high costs, aligning with the tightening market conditions in the containerboard sector.
The company’s efforts are reflected in the projected reduction of U.S. supply for the fourth consecutive year, a move that supports a more balanced market. Despite these positive steps, the limited upside potential to the price target suggests a cautious approach, justifying the Hold rating. The financial metrics, such as net debt to EBITDA ratios and dividend yield, also provide a mixed outlook, contributing to the Hold recommendation.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $52.00 price target.