International Paper, DS Smith working toward deal this week - Sky
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 08 2024
0mins
Source: SeekingAlpha
- International Paper and DS Smith Agreement: International Paper and DS Smith are working on a potential agreement before the weekend, with a deadline of April 23 for IP to announce its intention to make an offer for DS Smith.
- Potential Bid from Mondi: Mondi, who had previously agreed to acquire DS Smith, might still make a higher bid according to sources, as the parties work on a Rule 2.7 recommended offer.
- Progress in Due Diligence: International Paper confirmed significant progress in reciprocal due diligence with DS Smith's board and management, indicating advancements in their discussions for a potential takeover offer.
- Shareholder Exchange Ratio: DS Smith shareholders could receive 0.1285 shares in IP for each share they own if the acquisition deal goes through.
- Market Reaction: International Paper's shares fell nearly 1% on Monday amid these developments regarding the potential acquisition of DS Smith.
Analyst Views on IP
Wall Street analysts forecast IP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IP is 48.35 USD with a low forecast of 36.00 USD and a high forecast of 57.80 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
2 Hold
1 Sell
Moderate Buy
Current: 41.840
Low
36.00
Averages
48.35
High
57.80
Current: 41.840
Low
36.00
Averages
48.35
High
57.80
About IP
International Paper Company provides sustainable packaging solutions. The Company is a global producer of renewable fiber-based packaging products. Its segments include Packaging Solutions North America and Packaging Solutions EMEA. Packaging Solutions North America and Packaging Solutions EMEA segments are primarily focused on producing fiber-based packaging. It produces linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft of which a majority of its production is converted into corrugated packaging and other packaging. The Company’s recycling solutions and services manage fiber recovery programs for retailers, grocers, e-commerce, distribution centers, manufacturers, and its own box plants by managing recovered fiber streams used in packaging production.
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.
