Peek Under The Hood: IMCV Has 14% Upside
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2025
0mins
Should l Buy IP?
Source: NASDAQ.COM
ETF Performance Analysis: The iShares Morningstar Mid-Cap Value ETF (IMCV) has an implied analyst target price of $83.15 per unit, indicating a potential upside of 13.95% from its current trading price of $72.97.
Individual Holdings Upside Potential: Notable underlying holdings such as United Therapeutics Corp, International Paper Co, and Expedia Group Inc show significant upside potential, with expected increases of 28.97%, 27.05%, and 26.21% respectively based on average analyst target prices.
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Analyst Views on IP
Wall Street analysts forecast IP stock price to rise
12 Analyst Rating
9 Buy
2 Hold
1 Sell
Moderate Buy
Current: 36.890
Low
36.00
Averages
48.35
High
57.80
Current: 36.890
Low
36.00
Averages
48.35
High
57.80
About IP
International Paper Company is a sustainable packaging solutions company. The Company's segments include Packaging Solutions North America and Packaging Solutions EMEA. The Company's products and services include Packaging, Packaging Services, and Recycling. It provides corrugated packaging, solid fiber, corrugated sheets, retail displays, bulk packaging, and more. It also offers related services such as design and fulfillment to support these solutions. It provides a range of packaging and display services, from design and testing to fulfillment, including structural design, graphic design services, printing, testing, fulfillment and assembly and mechanical packaging. Its recycling solutions and services manage fiber recovery programs for retailers, grocers, e-commerce, distribution centers, manufacturers, and our own box plants. It designs closed-loop recycling programs that move old corrugated containers (OCC) and other fiber-based recycling materials.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Market Capitalization Comparison: International Paper vs. Evergy
- Market Cap Comparison: International Paper Co (IP) has a market capitalization of $19.33 billion, compared to Evergy Inc (EVRG) at $18.78 billion, highlighting the relative size differences that influence investor valuation.
- Investor Misconceptions: Many novice investors mistakenly compare stock prices to gauge company value, but market capitalization provides a more accurate assessment, enabling better-informed investment decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also determines which mutual funds and ETFs may invest in these stocks, with large-cap funds typically favoring companies valued over $10 billion.
- Index Influence: For instance, the S&P MidCap index focuses on smaller companies by excluding the largest 100, underscoring the significance of market cap in investment strategies and market performance, particularly in favorable market conditions.
See More
International Paper Acquires North Pacific Paper for $360 Million
- Acquisition Deal: International Paper has agreed to acquire North Pacific Paper Company for $360 million, a move expected to enhance its market position in paper manufacturing and generate significant long-term value for the company.
- Strategic Fit: Tom Hamic, Executive Vice President, emphasized that this acquisition aligns closely with the company's long-term value creation priorities, indicating a strategic expansion in the packaging solutions sector.
- Company Background: North Pacific Paper is a portfolio company of One Rock Capital Partners, based in Longview, Washington, employing approximately 500 people, which provides strong production capacity and market influence.
- Market Outlook: This acquisition is poised to not only enhance International Paper's production capabilities but also solidify its competitive advantage in the North American market, particularly in the growing packaging solutions segment.
See More
International Paper Acquires North Pacific Paper Company for $360MM
- Acquisition Overview: International Paper has entered into an agreement to acquire North Pacific Paper Company (NORPAC) for $360 million, a U.S.-based manufacturer producing approximately one million tons of containerboard annually, which is expected to enhance IP's market share in the West Coast region.
- Integration Benefits: This acquisition will increase the flexibility of IP's existing mill system, reduce production costs, and expand its capabilities in producing lightweight, high-performance recycled containerboard to meet growing customer demand, thereby solidifying its market leadership.
- Strategic Fit: IP executives noted that this acquisition aligns closely with the company's long-term value creation priorities, as NORPAC's customer base and operational capabilities will enhance its service capacity in the West Coast, driving future business growth.
- Management Team Recognition: The co-founder of One Rock Capital praised NORPAC's management team and employees, highlighting the successful transformation achieved during their ownership, and stated that this transaction underscores the value created at NORPAC and positions the company for continued success as part of a larger platform.
See More
International Paper Acquires North Pacific Paper Company for $360MM
- Acquisition Agreement: International Paper has entered into an agreement to acquire North Pacific Paper Company for $360 million, aiming to enhance its market capabilities on the West Coast and expected to strengthen its competitive position in sustainable packaging.
- Production Capacity Boost: NORPAC's facility in Longview, Washington, produces approximately one million tons of containerboard and other grades annually, and the acquisition will enhance International Paper's production flexibility while reducing costs.
- Strategic Fit: International Paper executives noted that this acquisition aligns with the company's long-term value creation priorities, as NORPAC's customer base and operational capabilities will further solidify its service capacity in the rapidly growing West Coast market.
- Regulatory Approval: The acquisition is subject to regulatory approval, and International Paper plans to work closely with the NORPAC team and its customers to ensure a safe and seamless integration process.
See More
North American Paper Companies Face Diverging Fundamentals Ahead of Q1 Earnings
- Containerboard Market Highlight: RBC's report indicates that containerboard producers have benefited from over 8% capacity reductions in North America over the past year, pushing industry operating rates toward 90%, which has improved the pricing environment, particularly for major players like International Paper and Smurfit WestRock.
- Lumber Price Recovery: Southern Yellow Pine prices averaged $433 per thousand board feet in Q1 and recently surpassed $500; however, RBC cautions that this rally may not be sustainable as producers remain hesitant to increase output due to high mortgage rates impacting housing demand.
- Housing Market Weakness: Analysts expect single-family housing starts to decline in 2026, with only modest growth in repair and remodeling activity, as elevated mortgage rates continue to dampen new construction and home turnover, putting pressure on wood product demand.
- Energy Cost Impact: RBC warns that rising energy prices linked to geopolitical tensions in the Middle East could pressure margins and affect demand through weaker consumer spending and higher interest rates, potentially accelerating capacity rationalization in certain regions.
See More
International Paper Rated Among Cheapest High Dividend Stocks
- Coverage Initiation: On April 1, Deutsche Bank initiated coverage of International Paper (NYSE:IP) with a Hold rating and a $38 price target, highlighting the packaging sector's challenges from weak consumer demand and ongoing cost inflation.
- New Facility Construction: International Paper plans to build a 468,000-square-foot sustainable packaging facility in Rankin County, Mississippi, with a $225 million investment aimed at replacing outdated infrastructure to enhance operational efficiency and product quality, with construction set to begin in June 2026 and operations targeted for Q4 2027.
- Regional Service Enhancement: The new facility will bolster service capabilities in the Mid-South region by incorporating modern safety and operational technologies, reducing costs, and improving product quality, with current Richland plant employees expected to transition to the new site, optimizing workforce allocation.
- Cautious Industry Outlook: While Deutsche Bank remains constructive on rigid and flexible packaging, it expresses caution regarding fiber-based packaging due to rising oil prices and tariff-related challenges, which could impact International Paper's long-term growth potential.
See More
Market Capitalization Comparison: International Paper vs. Evergy
- Market Cap Comparison: International Paper Co (IP) has a market capitalization of $19.33 billion, compared to Evergy Inc (EVRG) at $18.78 billion, highlighting the relative size differences that influence investor valuation.
- Investor Misconceptions: Many novice investors mistakenly compare stock prices to gauge company value, but market capitalization provides a more accurate assessment, enabling better-informed investment decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also determines which mutual funds and ETFs may invest in these stocks, with large-cap funds typically favoring companies valued over $10 billion.
- Index Influence: For instance, the S&P MidCap index focuses on smaller companies by excluding the largest 100, underscoring the significance of market cap in investment strategies and market performance, particularly in favorable market conditions.
See More
International Paper Acquires North Pacific Paper for $360 Million
- Acquisition Deal: International Paper has agreed to acquire North Pacific Paper Company for $360 million, a move expected to enhance its market position in paper manufacturing and generate significant long-term value for the company.
- Strategic Fit: Tom Hamic, Executive Vice President, emphasized that this acquisition aligns closely with the company's long-term value creation priorities, indicating a strategic expansion in the packaging solutions sector.
- Company Background: North Pacific Paper is a portfolio company of One Rock Capital Partners, based in Longview, Washington, employing approximately 500 people, which provides strong production capacity and market influence.
- Market Outlook: This acquisition is poised to not only enhance International Paper's production capabilities but also solidify its competitive advantage in the North American market, particularly in the growing packaging solutions segment.
See More
International Paper Acquires North Pacific Paper Company for $360MM
- Acquisition Overview: International Paper has entered into an agreement to acquire North Pacific Paper Company (NORPAC) for $360 million, a U.S.-based manufacturer producing approximately one million tons of containerboard annually, which is expected to enhance IP's market share in the West Coast region.
- Integration Benefits: This acquisition will increase the flexibility of IP's existing mill system, reduce production costs, and expand its capabilities in producing lightweight, high-performance recycled containerboard to meet growing customer demand, thereby solidifying its market leadership.
- Strategic Fit: IP executives noted that this acquisition aligns closely with the company's long-term value creation priorities, as NORPAC's customer base and operational capabilities will enhance its service capacity in the West Coast, driving future business growth.
- Management Team Recognition: The co-founder of One Rock Capital praised NORPAC's management team and employees, highlighting the successful transformation achieved during their ownership, and stated that this transaction underscores the value created at NORPAC and positions the company for continued success as part of a larger platform.
See More
International Paper Acquires North Pacific Paper Company for $360MM
- Acquisition Agreement: International Paper has entered into an agreement to acquire North Pacific Paper Company for $360 million, aiming to enhance its market capabilities on the West Coast and expected to strengthen its competitive position in sustainable packaging.
- Production Capacity Boost: NORPAC's facility in Longview, Washington, produces approximately one million tons of containerboard and other grades annually, and the acquisition will enhance International Paper's production flexibility while reducing costs.
- Strategic Fit: International Paper executives noted that this acquisition aligns with the company's long-term value creation priorities, as NORPAC's customer base and operational capabilities will further solidify its service capacity in the rapidly growing West Coast market.
- Regulatory Approval: The acquisition is subject to regulatory approval, and International Paper plans to work closely with the NORPAC team and its customers to ensure a safe and seamless integration process.
See More
North American Paper Companies Face Diverging Fundamentals Ahead of Q1 Earnings
- Containerboard Market Highlight: RBC's report indicates that containerboard producers have benefited from over 8% capacity reductions in North America over the past year, pushing industry operating rates toward 90%, which has improved the pricing environment, particularly for major players like International Paper and Smurfit WestRock.
- Lumber Price Recovery: Southern Yellow Pine prices averaged $433 per thousand board feet in Q1 and recently surpassed $500; however, RBC cautions that this rally may not be sustainable as producers remain hesitant to increase output due to high mortgage rates impacting housing demand.
- Housing Market Weakness: Analysts expect single-family housing starts to decline in 2026, with only modest growth in repair and remodeling activity, as elevated mortgage rates continue to dampen new construction and home turnover, putting pressure on wood product demand.
- Energy Cost Impact: RBC warns that rising energy prices linked to geopolitical tensions in the Middle East could pressure margins and affect demand through weaker consumer spending and higher interest rates, potentially accelerating capacity rationalization in certain regions.
See More
International Paper Rated Among Cheapest High Dividend Stocks
- Coverage Initiation: On April 1, Deutsche Bank initiated coverage of International Paper (NYSE:IP) with a Hold rating and a $38 price target, highlighting the packaging sector's challenges from weak consumer demand and ongoing cost inflation.
- New Facility Construction: International Paper plans to build a 468,000-square-foot sustainable packaging facility in Rankin County, Mississippi, with a $225 million investment aimed at replacing outdated infrastructure to enhance operational efficiency and product quality, with construction set to begin in June 2026 and operations targeted for Q4 2027.
- Regional Service Enhancement: The new facility will bolster service capabilities in the Mid-South region by incorporating modern safety and operational technologies, reducing costs, and improving product quality, with current Richland plant employees expected to transition to the new site, optimizing workforce allocation.
- Cautious Industry Outlook: While Deutsche Bank remains constructive on rigid and flexible packaging, it expresses caution regarding fiber-based packaging due to rising oil prices and tariff-related challenges, which could impact International Paper's long-term growth potential.
See More
