Stifel raised its rating on International Paper Co to Buy from Hold, citing progress in the company’s turnaround plan and steps to improve profitability. The firm kept its price target at $57.80.
The analyst noted that initial optimism following CEO Andy Silvernail’s appointment had moderated, replaced by more realistic expectations for performance improvement and recognition of challenges from the DS Smith acquisition.
International Paper has executed key actions, including the $1.5 billion sale of underperforming Global Cellulose Fiber operations, and is approaching a strategic pivot aimed at profit and margin improvement.
Adjusted EBITDA is expected to reach the company’s 2027 target of $5.5-6 billion, Stifel said.
Market headwinds are expected to reduce the company’s 2025-2027 average like-for-like EBITDA estimates by roughly 5%, or 9% including the fiber disposal.
However, the analyst said cost reductions from mill and plant closures, combined with tightening in the North American containerboard market, support an improved outlook.
Stifel noted that while the turnaround has yet to produce measurable results compared with U.S. peers and the DS Smith acquisition initially weighed on margins, recent actions and a reset in valuation make the stock attractive.
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