International Paper is sized up favorably after Mondi backs away from DS Smith bid
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2024
0mins
Source: SeekingAlpha
- Analyst View on International Paper: Analysts view International Paper positively after Mondi decides not to participate in a bidding war for DS Smith, providing clarity for investors.
- Financial Impact of the Deal: The deal is expected to be accretive by 19% in 2025 with synergies and a low post-synergies multiple, potentially leading to investor acceptance over time.
- Market Response: International Paper's shares rose by 1.25% in premarket trading following the news.
- Investor Sentiment: Investors are still divided on the transaction, but Jefferies sees potential upside if IP executes well and the new CEO can sell the deal effectively.
- Industry Outlook: With higher EU containerboard and flexible packaging prices, the downgrade cycle for EU packaging stocks seems to be ending.
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.
