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

    DICK'S Expands Further with New Santa Rosa Store - Analyst Blog

  2. Stock Analysis

    Nordstrom Plans to Open Another Rack Store in California - Analyst Blog

  3. Stock Analysis

    Gilead Includes Pan-Genotypic Agent in HCV Licensing Deals - Analyst Blog

  4. Stock Analysis

    Energy Transfer Partners, Regency Enter $18B Merger Deal - Analyst Blog

  5. Stock Analysis

    Cablevision Forays into Mobile Business with Freewheel - Analyst Blog

Trading Center