Checks Indicate International Paper (IP) and WestRock (WRK) Could See Another Price Hike in March - BMO Capital

BMO Capital analyst Mark Wilde reiterated Outperform ratings on International Paper (NYSE: IP) and WestRock (NYSE: WRK) expecting a market driven price hike due to scarcity in March.

The analyst stated "Based on widespread market checks, we’re becoming more optimistic around prospects for the March hike. There is some talk of the initiative settling at $50-60/ton rather than the full $70/ton (the industry’s largest-ever hike). At the moment, market conditions seem to favor full implementation. Although we have not factored the March hike into our commodity price deck or our corresponding earnings estimates, our current bias is that success appears likely. Our estimate of success is 75-80%. Historically,independent box makers often sound the loudest resistance to container board hikes. This spring, their tune will likely be more upbeat."

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 $48.05 yesterday.

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