UPDATE: Goldman Sachs Starts International Paper (IP) at Neutral

September 22, 2016 6:40 AM EDT
Get Alerts IP Hot Sheet
Price: $54.31 +1.15%

Rating Summary:
    7 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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(Updated - September 22, 2016 9:13 AM EDT)

Goldman Sachs initiated coverage on International Paper (NYSE: IP) with a Neutral rating and a price target of $49. Analyst Brian Maguire is cautious given pricing and pension concerns.

'While we like management’s long-term focus on optimizing the asset portfolio, improving ROIC, and returning cash to shareholders, our Neutral rating reflects our neutral to slightly negative view of containerboard (63% of total EBITDA), boxboard/SBS (9%), and pulp (8%). Furthermore, IP’ s $4.2bn unfunded pension liability has the potential to consume significant amounts of cash in the near-term that makes its relative valuation less attractive than it otherwise would appear to be," said the analyst.

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 $48.49 yesterday.

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