International Paper (NYSE:IP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage currently has a $70.00 price objective on the basic materials company’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 17.51% from the stock’s previous close.
According to Zacks, “International Paper reported solid fourth-quarter 2017 results with healthy year-over-year increase in earnings and revenues. The company has strategically offloaded businesses in China to focus more on its U.S. operations. It has also completed the divesture of its consumer packaging business in North America to Graphic Packaging. In North America, the company envisions a large opportunity within its industrial packaging businesses, which continue to generate the best margins in the industry. The company is taking initiatives to drive further margin expansion over time across the business. At the same time, International Paper intends to invest significantly to further improve its North American containerboard mill system, enhance product quality, and reduce manufacturing and delivery costs. However, high pension obligations remain a significant headwind. International Paper has also underperformed the industry in the last three months.”
Several other equities research analysts have also recently weighed in on IP. DA Davidson increased their price objective on International Paper to $74.00 and gave the company a “buy” rating in a research report on Friday. ValuEngine raised International Paper from a “hold” rating to a “buy” rating in a research report on Friday. Bank of America raised their target price on International Paper from $66.00 to $70.00 and gave the stock a “buy” rating in a research report on Thursday, February 1st. BMO Capital Markets reaffirmed a “buy” rating and issued a $70.00 target price on shares of International Paper in a research report on Thursday, January 25th. Finally, KeyCorp reaffirmed a “hold” rating on shares of International Paper in a research report on Thursday, October 12th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and ten have assigned a buy rating to the company’s stock. International Paper has an average rating of “Buy” and a consensus target price of $65.75.
International Paper (NYSE:IP) last posted its quarterly earnings data on Thursday, February 1st. The basic materials company reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.08. International Paper had a return on equity of 29.53% and a net margin of 9.36%. The company had revenue of $5.71 billion during the quarter, compared to analysts’ expectations of $6.01 billion. During the same period in the prior year, the business earned $0.67 earnings per share. International Paper’s revenue for the quarter was up 14.2% compared to the same quarter last year. equities research analysts anticipate that International Paper will post 4.63 EPS for the current fiscal year.
Several hedge funds and other institutional investors have recently modified their holdings of the business. Iridian Asset Management LLC CT lifted its holdings in shares of International Paper by 20.4% during the third quarter. Iridian Asset Management LLC CT now owns 6,432,080 shares of the basic materials company’s stock valued at $365,471,000 after acquiring an additional 1,090,030 shares during the period. Sound Shore Management Inc. CT lifted its holdings in shares of International Paper by 7.8% during the third quarter. Sound Shore Management Inc. CT now owns 3,624,456 shares of the basic materials company’s stock valued at $205,942,000 after acquiring an additional 263,372 shares during the period. Nordea Investment Management AB lifted its holdings in shares of International Paper by 11.5% during the third quarter. Nordea Investment Management AB now owns 2,442,847 shares of the basic materials company’s stock valued at $138,803,000 after acquiring an additional 251,751 shares during the period. Legal & General Group Plc lifted its holdings in shares of International Paper by 0.4% during the third quarter. Legal & General Group Plc now owns 2,254,181 shares of the basic materials company’s stock valued at $128,083,000 after acquiring an additional 8,216 shares during the period. Finally, Schwab Charles Investment Management Inc. lifted its holdings in shares of International Paper by 5.5% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 2,247,000 shares of the basic materials company’s stock valued at $130,192,000 after acquiring an additional 118,139 shares during the period. 81.53% of the stock is owned by institutional investors.
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About International Paper
International Paper Company is a paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. The Company’s segments include Industrial Packaging, Global Cellulose Fibers, Printing Papers and Consumer Packaging.
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