Stifel upgrades International Paper stock to Buy on strategic pivot

Investing.com - International Paper (NYSE:IP) stock, currently trading at $46.64, received an upgrade from Stifel on Friday, with analyst firm raising its rating from Hold to Buy and setting a price target of $57.80. According to InvestingPro data, the company stands as a prominent player in the Containers & Packaging industry, with analysts projecting sales growth for the current year.

The upgrade comes as Stifel believes the company is approaching a "pivot point" in its strategic transformation that should deliver improved profits and margins. While currently not profitable over the last twelve months, InvestingPro analysis indicates analysts expect profitability to return this year. The firm noted that initial market enthusiasm following CEO Andy Silvernail’s appointment has moderated to more realistic expectations. Notably, the company has maintained dividend payments for an impressive 55 consecutive years.

International Paper has taken concrete steps in its strategic overhaul, including the $1.5 billion disposal of its underperforming Global Cellulose Fiber operations, according to Stifel’s analysis.

Despite current muted market conditions, Stifel expressed confidence that International Paper’s strategic initiatives will help the company progress toward its 2027 adjusted EBITDA target range of $5.5-6.0 billion.

The analyst firm acknowledged that International Paper "still has a lot to prove," particularly regarding the challenges associated with its DS Smith acquisition, but believes the company has established a clear path forward.

In other recent news, International Paper announced a quarterly dividend of $0.4625 per share, payable on December 16, 2025, to shareholders of record as of November 14, 2025. The company also received early termination of the waiting period from the Federal Trade Commission for the planned sale of its Global Cellulose Fibers business. This transaction involves selling assets to Absorbent Fiber Topco, Inc., including various international holdings. Meanwhile, Seaport Global Securities downgraded International Paper from Buy to Neutral, citing concerns about valuation and profit improvement timelines. Despite this, UBS reaffirmed its Buy rating, highlighting efficiency gains from the company’s lighthouse program. The program, which began in 2024, focuses on optimizing box plant operations. These developments offer investors a range of insights into International Paper’s strategic and financial activities.

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