AnalystConsensusTarget updated the narrative for IP

International Paper's analyst price target has edged lower from $53.35 to $52.20, as analysts cite more measured revenue growth expectations and the need for successful execution of strategic initiatives to support sustained profitability.

Analyst Commentary

Recent Street research presents a mix of cautious optimism and ongoing concerns regarding International Paper's strategy, valuations, and future growth trajectory. Below, key bullish and bearish takeaways are summarized from analyst commentary.

• Bullish analysts highlight tangible restructuring actions, such as the $1.5 billion sale of lower-performing assets. These actions are seen as steps toward operational improvement and higher margins.
• The company is seen as nearing a critical pivot point, with renewed focus on executing its strategic rethink. This could improve profitability over the medium term.
• Some analysts maintain Buy ratings and set price targets in the mid-$50s, reflecting confidence in management's ability to deliver on margin expansion and long-term value creation.
• Stabilizing market fundamentals and disciplined capacity management across the sector are viewed as supportive factors for near-term price stability.

• Bearish analysts point to reduced revenue growth expectations and the challenge of executing complex strategic initiatives, particularly in Europe. These are seen as sources of risk to future performance.
• Recent downgrades reflect skepticism about whether International Paper can achieve its turnaround, with some noting that success is increasingly dependent on targets several years out.
• Valuation concerns persist, with the view that much optimism may already be priced in. Some analysts believe that more attractive investment opportunities exist among industry peers.
• Cautious voices also cite lackluster demand fundamentals, slow pricing environments, and exposure to potential execution setbacks as factors tempering near-term expectations.

What's in the News

• Kraton Corporation and International Paper executed agreements to ensure uninterrupted site services at Kraton's Savannah, Georgia facility. This move reinforces a shared commitment to supply reliability and operational continuity in the pine chemicals sector (Key Developments).
• International Paper announced plans to convert the No. 16 paper machine at its Riverdale mill in Selma, Alabama, for containerboard production by the third quarter of 2026. This initiative supports growth in sustainable packaging solutions (Key Developments).
• The company completed repurchasing 14,260,530 shares, or 4.02%, for $537.01 million under its existing buyback program. No additional shares were repurchased between April and June 2025 (Key Developments).
• International Paper provided new earnings guidance for the third quarter of 2025, expecting significantly higher sequential earnings (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has decreased modestly from $53.35 to $52.20.
• Discount Rate edged lower, moving from 7.40% to 7.31%.
• Revenue Growth projections have softened, declining from 7.89% to 6.98%.
• Net Profit Margin estimates have risen slightly, from 7.26% to 7.36%.
• Future P/E ratio has dipped gradually, changing from 21.34x to 21.10x.