UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on International Paper Company
In a report published Wednesday, Goldman Sachs reiterated its Neutral rating on International Paper Company (NYSE: IP), and slightly raised its price target from $41.00 to $42.00.
Goldman Sachs noted, “International Paper (IP) reported 4Q2012 EPS (ex. one-time items and nonoperating pension expense) of $0.69 vs. our estimate and consensus of $0.65. IP's 4Q2012 EBIT was $542 mn, below our $584 mn forecast, as the upside to our EPS estimate was driven largely by a lower-than-expected effective tax rate (21% vs. 32%). IP expects 2013 FCF to move higher by about $450-$500 mn, including $400 mn+ of benefit from higher containerboard/box pricing, and $350-$450 mn from strategic investments, partially offset by $200 mn of cost inflation, $100 mn of lower earnings from the sale from three containerboard mills in 2012, and modestly lower bleached board prices.”
International Paper Company closed on Tuesday at $41.90.
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Tags: Goldman Sachs