Deutsche Bank Downgrades International Paper (IP) to Hold

September 27, 2013 7:08 AM EDT
Get Alerts IP Hot Sheet
Price: $53.55 --0%

Rating Summary:
    6 Buy, 11 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Trade IP Now!
Join SI Premium – FREE
Deutsche Bank downgraded International Paper (NYSE: IP) from Buy to Hold with a price target of $51.00 (from $54.00).

The biggest issue is evidence of increased capital being invested in domestic c’board capacity (IP's "core" business) – both new mills & conversions," analyst Mark Wilde said. "Based on our analysis, we think industry operating rates could drop from recent levels in the high 90’s to 90% or below by 2015. Without stronger demand, IP could be forced to take more economic downtime or make permanent capacity shuts. In the short-term, the issues are continued sluggish domestic c’board demand, rising inventories and some very modest pricing pressure from new capacity."

The firm trimmed FY13Q3 EPS from $1.05 to $0.92, FY 2013 EPS goes from $3.40 to $3.15 and FY 2014 EPS goes from $4.40 to $4.05.

For an analyst ratings summary and ratings history on International Paper click here. For more ratings news on International Paper click here.

Shares of International Paper closed at $47.29 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change, Downgrades

Related Entities

Deutsche Bank

Add Your Comment