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Investing.com - UBS has reiterated its Buy rating and $60.00 price target on International Paper (NYSE:IP), despite the stock’s 12% decline since its July 31 earnings announcement. Currently trading at $47.01, the stock sits well below analysts’ average target of $63.00, while maintaining its impressive 55-year streak of consecutive dividend payments, currently yielding 3.94%.
UBS analyst Anojja Shah noted that investors may not be giving International Paper sufficient credit for new business wins and cost savings already achieved by the company.
The paper and packaging company has already exceeded its 2025 target of $600 million for commercial initiatives as of the second quarter, according to UBS’s analysis using its HOLT DCF-oriented framework.
International Paper is also beginning to onboard $60 million of new business on an annual run rate basis in the second half of the year, further strengthening its commercial position.
The company has achieved a cost savings run rate of $550 million at the end of the second quarter, approaching its $600 million target for 2025, demonstrating significant progress in its efficiency initiatives.
In other recent news, International Paper reported its Q2 2025 earnings, revealing a significant miss in earnings per share (EPS) compared to analyst forecasts. The company posted an EPS of $0.20, falling short of the expected $0.39, which represents a 48.72% negative surprise. Despite this earnings miss, International Paper’s revenue exceeded expectations, reaching $6.77 billion against a forecast of $6.57 billion. Following the earnings report, JPMorgan downgraded International Paper’s stock rating from Overweight to Neutral. The downgrade was influenced by the disappointing earnings report, particularly noting weakness in the company’s EMEA segment. JPMorgan also slightly lowered its price target for the company to $54.00 from $55.00. These developments reflect recent challenges faced by International Paper in meeting market expectations.
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