UPDATE: JP Morgan Upgrades International Paper Company to Overweight on Upside from Pricing Increases
JP Morgan upgraded International Paper Company (NYSE: IP) from Neutral to Overweight and raised the price target from $46.00 to $61.00.
JP Morgan noted, "[C]onsidering the stock has barely clawed back its >4% decline on Wednesday, despite meaningfully positive news around the potential for an imminent containerboard price increase for the industry, we think this may prove to be as good as it gets [as an entry point]. We think other producers will follow suit on the increase, on which we think IP is worth $51/share by Dec-13, assuming a 10% forward FCF yield on 2014E. On the other hand, if the increase does not occur, which we now place a low probability on, we think YE13 downside could be limited to ~$40 considering a 10% FCF yield in a zero price increase scenario on 2014E FCF."
International Paper Company closed at $43.00 on Friday.
Latest Ratings for IP
|Feb 2016||Credit Suisse||Maintains||Outperform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.