Seaport Research upgraded International Paper to Buy from Neutral with a $52 price target. The selloff after Suzano dropped its takeover pursuit provides a “reasonable entry point” into International Paper, the analyst tells investors in a research note. The firm says profitability in containerboard is improving from multi-year lows, and fundamentals should tighten going forward. It also sees 200-500 basis points of margin catch-up in the company’s North America Industrial Packaging business and expects improved near-term profitability in Global Cellulose Fibers with divestiture of the business in the year ahead “a distinct possibility.”
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