KeyBanc analyst Adam Josephson maintained a Hold rating on International Paper Co (NYSE: IP) today. The company’s shares opened today at $43.76, close to its 52-week low of $39.60.
Josephson said:
“We are assuming flat EBITDA in 2019 following substantial growth in 2018; IP’s business is a cyclical one, and we expect more difficult industry conditions ahead (in containerboard and pulp specifically). Prices in both commodity markets are at all-time highs at what appears to be the peak of the global economic cycle, not to mention the fact that significant containerboard supply is on the come over the next few months and years. As IP noted on its call, its highest margins in industrial packaging tend to occur when the economy’s at its strongest, which it appears to be right now.”
According to TipRanks.com, Josephson is a 4-star analyst with an average return of 7.9% and a 66.2% success rate. Josephson covers the Consumer Goods sector, focusing on stocks such as Avery Dennison Corp, Graphic Packaging, and Clearwater Paper.
The word on The Street in general, suggests a Hold analyst consensus rating for International Paper Co with a $50.83 average price target, representing a 16.2% upside. In a report issued on October 23, Seaport Global also initiated coverage with a Hold rating on the stock.
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Based on International Paper Co’s latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $5.83 billion and net profit of $405 million. In comparison, last year the company earned revenue of $5.91 billion and had a net profit of $395 million.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock.
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International Paper Co. engages in the manufacture of paper and packaging products. It operates through the following segments: Industrial Packaging, Global Cellulose Fibers, and Printing Papers.
