Stifel Upgrades International Paper (IP) to Buy, Sees Profit Growth Ahead

Core Viewpoint - International Paper Company (NYSE:IP) is recognized for its potential in profit growth and strategic transformation, leading to a positive outlook for investors [2][3][4]. Group 1: Company Overview - International Paper manufactures a diverse range of products including paper, packaging, and cellulose fiber, which are essential in everyday items like diapers and feminine hygiene products [2]. - The company has a strong dividend history, maintaining uninterrupted payments since 1986, currently offering a quarterly dividend of $0.4625 per share with a yield of 3.88% as of October 21 [5]. Group 2: Recent Developments - On October 17, Stifel upgraded International Paper's rating from Hold to Buy, setting a new price target of $57.80, citing the company's strategic transformation as a key factor for expected profitability and margin expansion [3]. - The firm noted tangible progress in the company's turnaround efforts, including the $1.5 billion sale of its underperforming Global Cellulose Fiber business [4]. Group 3: Strategic Direction and Challenges - Analysts highlighted that while the initial optimism around CEO Andy Silvernail's appointment has stabilized, the company now has a clearer strategic direction [4][5]. - Challenges remain, particularly regarding the integration of the DS Smith acquisition, but ongoing initiatives are expected to help the company reach its 2027 adjusted EBITDA goal of $5.5 billion to $6.0 billion [4][5].