UBS Downgrades International Paper Company (IP) on Ongoing Cost Pressures

On February 2, UBS downgraded International Paper Company (NYSE:IP) to Neutral from Buy and lowered its terms people to $44 from $51, citing expectations for continued estimation unit successful 2026 and 2027 owed to prolonged translation costs tied to its outgo savings initiatives. The steadfast noted that a below-consensus first-quarter outlook suggests net volition beryllium weighted toward the backmost fractional of the year, with further outgo headwinds expected arsenic European footprint actions progress.

On January 29, International Paper Company (NYSE:IP) guided 2026 endeavor nett income of $24.1–$24.9 billion, adjusted EBITDA of $3.5–$3.7 billion, and escaped currency travel of $300–$500 million, with first-quarter adjusted EBITDA expected betwixt $740–$760 million. Management reiterated a semipermanent ambition of reaching $5 cardinal successful EBITDA by 2027 arsenic operational improvements and outgo initiatives instrumentality hold. While near-term net look unit from restructuring efforts, the company’s scale, disciplined superior allocation, and wide multi-year borderline enlargement targets supply a structured way toward improved profitability, making the banal charismatic for investors seeking cyclical betterment vulnerability with defined outgo optimization catalysts.

Founded successful 1898 and headquartered successful Memphis, Tennessee, International Paper Company (NYSE:IP) is simply a pulp and insubstantial institution employing astir 39,000 radical globally. It manufactures and sells a scope of insubstantial products and packaging, specified arsenic corrugated packaging, retail displays, and bulk packaging.

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