UBS Maintains a 'Buy' on International Paper (IP); Transformation Reveals Much Stronger Company
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Price: $35.06 -2.37%
Rating Summary:
10 Buy, 8 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
Rating Summary:
10 Buy, 8 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
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UBS maintains a 'Buy' on International Paper (NYSE: IP) price target raised from $39 to $43.
UBS analyst said, "In mid-2005 IP embarked on a major transformation which resulted in $11+ bn in asset sales and major refocusing of the business. IP has cut its reliance on non-recurring land sale income and materially reduced its exposure to US uncoated free sheet. At the same time, it has increased its exposure to US containerboard, a market which we view as having a favorable long-term structural advantage. Overall earnings quality, profitability, cash flow and leverage have improved."
"Green shoots, but also some near-term headwinds: IP has been a chronic underperformer. But over past 4 years IP has outperformed a group of 20 leading industrial companies. We are lowering our 1Q EPS estimate to $0.50 to reflect mainly 1x issues-no change in longer term earnings potential."
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 $35.71 yesterday.
UBS analyst said, "In mid-2005 IP embarked on a major transformation which resulted in $11+ bn in asset sales and major refocusing of the business. IP has cut its reliance on non-recurring land sale income and materially reduced its exposure to US uncoated free sheet. At the same time, it has increased its exposure to US containerboard, a market which we view as having a favorable long-term structural advantage. Overall earnings quality, profitability, cash flow and leverage have improved."
"Green shoots, but also some near-term headwinds: IP has been a chronic underperformer. But over past 4 years IP has outperformed a group of 20 leading industrial companies. We are lowering our 1Q EPS estimate to $0.50 to reflect mainly 1x issues-no change in longer term earnings potential."
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 $35.71 yesterday.
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