Core Viewpoint - International Paper (NYSE:IP) is recognized as one of the top paper and plastic packaging stocks to buy according to hedge funds, despite recent "light" fourth-quarter results and a cautious outlook for the upcoming year [1]. Group 1: Analyst Ratings and Price Targets - Citi analyst Anthony Pettinari raised the price target for International Paper from $46 to $47 while maintaining a Buy rating [1]. - Wells Fargo analyst Gabrial Hajde upgraded his rating from Underweight to Equal Weight and increased the price target from $36 to $40 [2]. Group 2: Company Operations and Strategy - Hajde noted significant improvements in the company's PSNA operations over the past couple of years, leading to a more balanced risk/reward profile and aligning with management's view that regions function better as independent companies [3]. - International Paper focuses on renewable fiber-based packaging and pulp products, structured into two segments: Industrial Packaging and Global Cellulose Fibers [4]. - The company expanded its presence in North America and EMEA through the acquisition of DS Smith in 2025 [4].

Core Viewpoint - Smurfit Westrock (NYSE:SW) is recognized as one of the top paper and plastic packaging stocks to buy, with analysts projecting significant upside potential for investors [1]. Group 1: Analyst Ratings and Price Targets - Morgan Stanley's Ioannis Masvoulas maintains an Overweight rating on Smurfit Westrock with a price target of $53, indicating an upside of over 20% for investors [1][3]. - Citi's Anthony Pettinari assigned a Buy rating but lowered the price target from $49 to $48, suggesting a revised upside of nearly 9% [3][4]. Group 2: Company Strategy and Operations - The company is shifting its strategy towards a value focus rather than a volume-driven approach in North America, enhancing operational accountability at the plant level and reducing unprofitable contracts [3]. - Smurfit Westrock produces and distributes sustainable paper-based packaging products, including containerboards and corrugated containers, across 40 countries and various segments such as consumer goods, e-commerce, retail, industrial, and food & beverages [5]. Group 3: Market Outlook - Citi's price revision for Smurfit Westrock is part of broader adjustments in the packaging segment, reflecting a challenging outlook for volume setup in the sector for the upcoming year [4].