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Deutsche Bank Downgrades International Paper (IP) to Hold

September 27, 2013 7:08 AM EDT Send to a Friend
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Price: $49.80 --0%

Rating Summary:
    10 Buy, 7 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 32
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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.

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