International Paper stock rating reaffirmed at Buy by UBS, citing efficiency gains

Investing.com - UBS has reiterated its Buy rating on International Paper (NYSE:IP) with a $60.00 price target following an analyst visit to one of the company’s four lighthouse plants in Aurora, Illinois. According to InvestingPro data, this target represents nearly 30% upside from the current price of $46.59, with analyst targets ranging from $42.10 to $63.00.

The visit to the Chicago-area facility provided UBS with deeper insights into International Paper’s box plant optimization program, known as the "lighthouse program," which began in mid-2024.

UBS analyst Anojja Shah noted that the implications for efficiency, commercial excellence, and capital allocation became much clearer after touring the facility and meeting with company representatives, including Mandi Gilliland, Senior Director of Investor Relations, and Murry Franklin, Region General Manager for the Upper Midwest.

The analyst highlighted that CEO Andrew Silvernail has brought a fresh perspective to International Paper since taking the helm, implementing significant operational changes through the lighthouse initiative.

According to UBS, many long-tenured employees at the Aurora facility with 25+ years of service indicated that the changes implemented in the past year since the lighthouse project began are the most significant they have witnessed in their careers.

In other recent news, International Paper reported its Q2 2025 earnings, revealing a significant miss in earnings per share (EPS) compared to forecasts. The company posted an EPS of $0.20, falling short of the $0.39 forecast, marking a 48.72% negative surprise. However, revenue exceeded expectations, reaching $6.77 billion against a forecast of $6.57 billion. Additionally, International Paper announced a definitive agreement to sell its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, with the transaction expected to close by year-end.

UBS has reiterated its Buy rating on International Paper, highlighting the company’s cost savings and new business wins. Conversely, JPMorgan downgraded International Paper from Overweight to Neutral, citing the earnings miss and particular weakness in the company’s EMEA segment. These developments reflect varied analyst perspectives on the company’s recent performance and strategic moves.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.