UBS Keeps Buy on Int'l Paper (IP), Boosts PT to $42; Notes Successful Price Hike, Potential Tailwinds

October 26, 2012 1:25 PM EDT Send to a Friend
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Price: $53.62 -0.22%

Rating Summary:
    11 Buy, 7 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 18 | New: 41
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UBS maintains International Paper (NYSE: IP) at Buy, moving its price target from $42 to $44.

The firm said the IP missed its estimates by 2 cents with EPS of 75 cents, with much of the shortfall coming in Industrial Packaging. The result reflects about 6 cents of one-time items offset by 5 cents of benefit from foreign exchange translation.

UBS lowers it Q4 EPS estimate from 71 cents down to 58 cents, versus the consensus of 76 cents. FY13 EPS moves from $3.60 down to $3.15, driven by a $275 million rise in pension expenses.

Finally, the firm noted that amid the tight board market, IP was able to swing its price increase. Further, the company is finalizing a wave of expansion projects which have created short-term headwinds, but could turn into tailwinds moving forward.

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 $35.26 yesterday.


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