Decoding 6 Analyst Evaluations For International Paper

In the preceding three months, 6 analysts have released ratings for International Paper (NYSE:IP), presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $40.67, along with a high estimate of $46.00 and a low estimate of $35.00. This upward trend is evident, with the current average reflecting a 1.04% increase from the previous average price target of $40.25.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of International Paper by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to International Paper. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of International Paper compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for International Paper's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of International Paper's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on International Paper analyst ratings.

Delving into International Paper's Background

International Paper manufactures packaging products and cellulose fibers. It accounts for roughly one third of the North American corrugated packaging market. Though it has operations in Brazil, Russia, India, and China, more than three fourths of its sales come from North America. International Paper serves a variety of end markets, including industrial, consumer products, and manufacturing.

Understanding the Numbers: International Paper's Finances

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Decline in Revenue: Over the 3 months period, International Paper faced challenges, resulting in a decline of approximately -10.36% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Materials sector.

Net Margin: International Paper's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -6.17%, the company may face hurdles in effective cost management.

Return on Equity (ROE): International Paper's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -3.3%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): International Paper's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.2%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: International Paper's debt-to-equity ratio is below the industry average. With a ratio of 0.71, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.