Will Savannah Site Deal and Riverdale Mill Conversion Reshape International Paper's (IP) Sustainable Packaging Strategy?

• Earlier this week, Kraton Corporation announced new agreements with International Paper to ensure uninterrupted site services for its Savannah, Georgia facility, while International Paper also revealed plans to convert the No. 16 paper machine at its Riverdale mill in Alabama to containerboard production by late 2026.
• The partnership between Kraton and International Paper highlights a joint focus on stable supply chains in pine chemicals, while the mill conversion reflects a move toward growth in sustainable packaging solutions.
• We'll explore how International Paper's investment in containerboard production adds fresh context to its existing investment narrative and growth outlook.

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International Paper Investment Narrative Recap

To be a shareholder in International Paper, you need to believe in the company’s ability to reposition itself amid industry shifts, particularly the growing global demand for sustainable, fiber-based packaging. The latest news on its Riverdale mill containerboard investment reinforces this theme but does not materially change short-term catalysts, such as mill reliability improvements, or lessen the biggest risk tied to operational inefficiencies and restructuring execution. Among recent announcements, the plan to convert the No. 16 paper machine at Riverdale to containerboard production stands out. This move aligns with International Paper’s core growth driver: expanding sustainable packaging capacity to meet rising demand, highlighting continued focus on high-return capital deployment and portfolio improvement initiatives. By contrast, investors should also be aware of persistent risks related to mill reliability and consistent execution, especially as ...

Read the full narrative on International Paper (it's free!)

International Paper's outlook estimates $28.8 billion in revenue and $2.0 billion in earnings by 2028. Achieving this requires 9.5% annual revenue growth and a $2.03 billion increase in earnings from the current -$27.0 million.

Uncover how International Paper's forecasts yield a $54.16 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community members estimated fair values for International Paper between US$49.88 and US$88.23 per share. While opinions vary widely, ongoing mill reliability concerns could influence performance and merit close attention alongside these alternative viewpoints.

Explore 3 other fair value estimates on International Paper - why the stock might be worth as much as 84% more than the current price!

Build Your Own International Paper Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your International Paper research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free International Paper research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate International Paper's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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