Update shared on 19 Nov 2025
International Paper's analyst price targets have seen both upgrades and reductions recently, with changes ranging roughly from a $1 increase to a $5 decrease. Analysts cite improving profitability initiatives alongside mixed expectations for future growth and operational execution.
Analyst Commentary
Recent analyst commentary on International Paper highlights both optimism about the company's current transformation and reservations regarding its future growth trajectory and execution challenges.
Bullish Takeaways- Bullish analysts note that International Paper is executing significant strategic changes, such as divesting underperforming assets. These changes are expected to improve profitability and enhance margins over time.
- There is a consensus among optimistic analysts that the new leadership is fostering a more realistic approach to growth, aligning valuation more closely with achievable operational improvements.
- Some revised price targets reflect optimism around the company reaching a pivotal point for strategic realignment. This supports the case for future earnings growth.
- Bearish analysts highlight concerns that current share prices continue to reflect excessive optimism. Downside risk remains if execution does not meet expectations.
- Several commentaries point to ongoing demand headwinds in key markets, with producers responding by cutting capacity rather than achieving volume growth.
- There is skepticism regarding the company's ability to successfully implement planned strategic actions, particularly in its European operations. This raises doubts about the timeline and reliability of projected improvements.
- Some downward price target revisions reflect caution about reliance on factors beyond management's direct control, such as future price increases and challenging external markets.
What's in the News
- International Paper will close its packaging facilities in Compton, California, and Louisville, Kentucky, by January 2026. This decision will affect a combined 218 employees. The company aims to minimize employee impact through attrition, retirements, and assistance programs. (Key Developments)
- The company completed its repurchase of 14,260,530 shares, representing 4.02% of shares outstanding and totaling $537.01 million under the buyback announced in 2021. (Key Developments)
- International Paper revised its earnings guidance for 2025, expecting $24 billion in net sales. (Key Developments)
- A new agreement with Sylvamo North America, LLC clarifies and amends the long-term supply arrangement at the Riverdale Mill. Winding down operations and transfer of certain assets are scheduled through mid-2026. (Key Developments)
- Plans are underway to convert the No. 16 paper machine at the Riverdale mill in Alabama to containerboard production by Q3 2026. This is part of a shift toward sustainable packaging solutions. (Key Developments)
Valuation Changes
- Fair Value remained unchanged at $47.16 according to updated analyses.
- Discount Rate rose slightly from 7.34% to 7.52%, reflecting a modest increase in required returns.
- Revenue Growth expectations declined, moving from 2.44% to 2.28% annually.
- Net Profit Margin estimates increased slightly from 6.75% to 6.78%.
- Future P/E Ratio decreased notably, dropping from 21.31x to 17.70x. This may indicate lowered growth expectations or changes in market sentiment.
Disclaimer
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