Deutsche Bank Reiterates Buy Rating, $41 PT for International Paper

In a company update published earlier today, Deutsche Bank AG reiterated its Buy rating and $41.00 price target for International Paper Company IP. Deutsche Bank said in its report “IP has reached two agreements to sell the three containerboard mills. The sales were mandated by the US Department of Justice as a condition for IP's acquisition of Temple-Inland. Two mills had been part of TIN, the third one was acquired in 2008 when IP acquired Weyerhaeuser's packaging business. The combined sale value is $470MM (excl'g working capital). This is markedly better than our most recent estimate of $300-450MM. A ~365K/tpy medium mill in New Johnsonville, TN is being acquired by the Hood Companies. New-Indy Containerboard LLC, a newly formed JV of the Kraft Group & Schwarz Partners, LP is buying the 2 mills in California - 380K tpy recycled mill in Ontario & 225K tpy Oxnard (Hueneme) mill.” International Paper Company closed yesterday at $29.20.