International Paper Sells Turkish Corrugated Packaging Business for €66M
International Paper (IP) has completed the sale of its 90.38% ownership stake in Olmuksan International Paper in Turkey to Mondi Group for €66 million. The global producer of renewable fiber-based packaging and paper products first announced the sales agreement in January.
International Paper has offloaded its stake in five corrugated packaging plants with 300,000 tons of annual converting capacity. The sale is in line with International Paper’s plan to focus on attractive markets.
Despite the sale, corrugated packaging remains a core business for IP and the company continues to produce corrugated packaging products designed to protect and promote goods while facilitating worldwide commerce. (See International Paper stock analysis on TipRanks).
In April, KeyBank analyst Adam Josephson reiterated a Sell rating citing IP’s reluctance to issue guidance that it usually provides. According to the analyst, the lack of guidance signals “unusual and uncertain” conditions for the company fueled by the pandemic.
Josephson stated, “We believe risks that could impede the stock from reaching our downside price target include continued record N.A. box demand resulting from the pandemic and related unprecedented U.S. government deficit-financed stimulus spending.”
The analyst raised his price to $50 from $47, implying 20.76% downside potential to current levels.
Consensus among analysts on Wall Street is a Hold based on 4 Buy, 2 Hold, and 3 Sell ratings. The average analyst price target of $58.78 implies 6.85% downside potential to current levels.
IP scores a 4 out of 10 on TipRanks’ Smart Score rating system suggesting its performance is likely to align with market expectations.
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