UPDATE: Bank of America Upgrades International Paper Co. to Buy, Raises PT on MLP Likelihood

Loading...
Loading...
In a report published Tuesday, Bank of America analyst George L. Staphos upgraded the rating on
International Paper Co.IP
from Neutral to Buy, and raised the price target from $53.00 to $55.00. In the report, Bank of America noted, “We note that MLP conversion is not guaranteed, and our valuation model is unavoidably imprecise given the number of assumptions one needs to make, partly as MLP structures in paperboard have never been attempted. Moreover, the companies may choose to not pursue the MLP structure for various reasons. In addition, all is not well in containerboard. Having downgraded IP and RKT to Neutral about a year ago, which has proven to be a non-consensus call, we have been very consistent in pointing out the capacity challenges in the sector. Should demand remain lackluster or worse and/or capacity increases come on at higher rates, this could also cause us to reassess our ratings. We expect pretty choppy 3Q results particularly for RKT and IP, and have reduced our forecasts through 2016.” International Paper Co. closed on Monday at $47.37.
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorUpgradesAnalyst RatingsBank of AmericaGeorge L. Staphos
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...