International Paper Co. (IP) - Bull of the Day

By Zacks | October 17, 2012 AAA

International Paper Co's (IP) merger with Temple-Inland will help increase its share in the North American corrugated-packaging market from 27% to 34%. Furthermore, through its joint ventures, International Paper has significant projects underway in Russia and China, which will help the company sustain its earnings growth.
International Paper has hiked its quarterly dividend by 14% to $1.20. We expect International Paper to continue to utilize its sound cash flow by investing in capital projects, acquisitions, reducing its total debt and paying increased dividend.



We have upgraded our recommendation from Neutral to Outperform on the successful implementation of an increase in containerboard prices and the accretive effect it will have on the earnings of the company with a target price of $45.00. This target price, 17.6x our 2012 EPS estimate, reflects our view.



You May Also Like

Related Analysis
  1. Stock Analysis

    A.M. Best Rates W.R. Berkley Corp. with a Stable Outlook - Analyst Blog

  2. Stock Analysis

    BP and Synchrony Financial Agree on Credit Program Launch - Analyst Blog

  3. Stock Analysis

    Enterprise Products' Panola Pipeline Expansion on Track - Analyst Blog

  4. Stock Analysis

    Will 3M Co. Beat Q4 Earnings on Sustainable Organic Growth? - Analyst Blog

  5. Stock Analysis

    Will Amgen (AMGN) Keep the Earnings Streak Alive in 4Q? - Analyst Blog

Trading Center