Jefferies reported on Tuesday that they have initiated coverage on paper and packaging company, International Paper Company(IP).
The firm has begun coverage on IP with a “Buy” rating and a $52 price target. This price target suggests a 17% increase from the stock’s current price of $42.93.
Analysts have given the company it’s rating and price target based on its ability to see a price increase and pay higher dividends.
An analyst from the firm commented,”we are initiating coverage on IP with a Buy, driven by our positive view on the containerboard industry and the company’s strong FCF profile. As the industry continues to show improved pricing power and discipline, and management proves it’s committed in returning cash to shareholders, we believe the stock will get re-rated.”
International Paper shares were up $1.14, or 2.73% during premarket trading Tuesday. The stock has increased 27% in the past year.
The Bottom Line
Shares of International Paper Company(IP) have a 2.87% yield, based on Monday’s closing price of $41.79.
International Paper Company(IP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.