UPDATE: Goldman Sachs Starts International Paper (IP) at Neutral
- AT&T (T) Agrees to Acquire Time Warner (TWX) for More than $80 Billion - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
(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.
Shares of International Paper closed at $48.49 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on Proofpoint (PFPT) Following Strong 3Q Results
- Maxim Integrated (MXIM) PT Bumped to $45 at Jefferies Following In-Line Results on Note 7 Impact
- Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesGoldman Sachs
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!