Will International Paper (IP) be the next takeover target as containerboard consolidation heats up?

**International Paper (IP) is not likely to be the next takeover target** based on the current analysis. Here's why: 1. **Recent Strategic Moves**: IP has been actively streamlining its operations and consolidating its European operations by selling off five European plants to PALM Group. These strategic moves indicate a proactive approach to optimize its business rather than a passive stance waiting for a takeover. 2. **Analyst Ratings and Price Targets**: Both UBS and Truist Financial have initiated Buy ratings on IP, highlighting its growth potential and strategic initiatives. The average analyst target price suggests a potential upside from its current trading price, which does not indicate a takeover valuation. 3. **Financial Performance and Valuation**: IP's financials show a revenue growth rate of 27.75% and a P/E ratio of 66.08, which do not typically suggest a undervaluation that would attract a bidder. The company's net income and diluted EPS have seen significant year-over-year declines, which could indicate challenges that a bidder might seek to address through a turnaround effort rather than simply acquiring the company at its current valuation. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |IP|IP.N|International Paper|2024 Q2|111.91489361702128|1.1106364801366937|107.35294117647057|169| |IP|IP.N|International Paper|2024 Q3|-9.090909090909092|1.5824842835464992|-10.638297872340424|169| |IP|IP.N|International Paper|2024 Q4|48.23943661971831|-0.45642251684416435|48.78048780487805|169| |IP|IP.N|International Paper|2025 Q1|-287.5|27.754925308508334|-250|169| |code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code| |---|---|---|---|---|---|---|---| |IP|IP.N|International Paper|20240701|87.511523|0.8046606436437507|1.8231055979362967|169| |IP|IP.N|International Paper|20240702|87.834593|0.8076312413129477|1.8298360293084655|169| |IP|IP.N|International Paper|20240703|87.91536|0.808373890730247|1.8315186371515078|169| |IP|IP.N|International Paper|20240705|86.461546|0.7950062012188602|1.8012316959767471|169| |IP|IP.N|International Paper|20240708|87.168261|0.8015043836202288|1.8159545146033669|169| |IP|IP.N|International Paper|20240709|85.916366|0.7899933176520902|1.7898740930362116|169| |IP|IP.N|International Paper|20240710|86.219244|0.7927782529669625|1.7961838724476202|169| |IP|IP.N|International Paper|20240711|86.643273|0.7966771624077836|1.805017563623592|169| |IP|IP.N|International Paper|20240712|88.097087|0.8100448519191703|1.835304504798353|169| |IP|IP.N|International Paper|20240715|89.126872|0.8195136319897359|1.856757754797142|169| 4. **Market Position and Growth Prospects**: IP is a leading player in the paper and packaging industry with significant market capitalization and a strong market presence. The company is expected to realize cost reductions and benefit from linerboard price increases, which could support its standalone value. 5. **Dividend and Financial Health**: IP has a strong dividend track record with 55 consecutive years of payments, which is a positive sign for investors and does not typically indicate a company ripe for takeover. In conclusion, while containerboard consolidation in the industry is a notable event, the evidence points more toward International Paper being a strategic consolidator rather than a target for consolidation at this time.