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.

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.